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2013 (3) TMI 331 - HC - Income TaxValidity of Reopening of assessment - Tribunal quashed the reassessment proceeding u/s 148 on the ground that the notice issued u/s 147 was invalid as the time available for issuing notice u/s 143(2) had not expired - Held that:- As decided in ACIT Versus Rajesh Jhaveri Stock Brokers P. Limited [2007 (5) TMI 197 - SUPREME COURT] failure to take steps under section 143(3) will not render the Assessing Officer powerless to initiate reassessment proceedings even when intimation under section 143(1) had been issued. Thus the order of the Tribunal holding that the notice under Section 147 of the Act dated 4th July, 2006 is invalid is legally not correct as on a query put by the Court, the assessee accepts if the recourse to Section 143(3) would have been barred by time, there would have been no restriction to initiate the reassessment proceeding under Section 147. There is nothing on the plain language of Section 143 which may suggest that the recourse to Section 147 can be had only when the period of limitation to complete assessment proceeding has expired or the Assessing Authority should wait for the expiry of the said period. The said argument is ridiculous and not acceptable. The ambit and scope of reassessment proceeding is limited and restricted and if the Assessing Authority in its wisdom proceeds to assess the income with the help of limited power, it does not lie in the mouth of the assessee to say that the Assessing Authority should have exercised wider jurisdiction i.e. the regular assessment proceeding instead - matter remanded back to the Tribunal to rehear and re-decide the appeals on merits on other issues.
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