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2011 (9) TMI 574 - HC - Income TaxValidity of Re-assessment under 147 - Held That:- an assessment under Section 147 is permissible subject to the period of limitation stated therein, irrespective of whether the return was filed or intimation sent to the assessee or regular assessment under Section 143(3) after issuing notice under Section 143(2) of the Act was made or not. In other words, even within the time available for issuing notice under Section 143(2) for making regular assessment if the Assessing Officer is of the view that materials available with him or discovered by him are such as to justify income escaping assessment under Section 147, he is free to record the reasons for the belief and proceed to make income escaping assessment under Section 147 without proceeding to make a regular assessment under Section 143(3) of the Act. The view expressed by us is in conflict with the view expressed by the Delhi High court in KLM ROYAL DUTCH AIRLINES Versus Assistant Director Of Income-Tax (2007 -TMI - 13420 - DELHI High Court) wherein they have held that once notice is issued for regular assessment under Section 143(2), the Assessing Officer has no authority to make income escaping assessment under Section 147 of the Act irrespective of whether the conditions of Section 147 are satisfied or not. However, as already stated, considering the consistent view taken by the Madras and Delhi High Courts that an income escaping assessment under Section 147 cannot be completed within the time available for issuing notice under Section 143(2) of the Act and for completion of assessment under Section 143(3) and since these decisions remain unchallenged by the department, we dismiss the departmental appeal for the year 2003-2004 i.e. ITA No.254/2010.
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