Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (5) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (5) TMI 895 - HC - Income TaxValidity of assessment – Bar of section 150(2) of the Act - Whether reopening of the assessment for the AY 1996-97 by the notice dated 10th June, 2010 was barred by Subsection (2) of Section 150 of the Act – Held that:- Relying upon ITO Vs Eastern Coal Co. Ltd. [1973 (12) TMI 32 - CALCUTTA High Court] - a notice would become barred even u/s 150(1) if on the date of the appellate order the time for taking action for assessment for that year had become barred by the other provisions of the Act - The correct date in this connection would be the date when the order, which is the subject-matter of the appeal, was passed - If on that date the reassessment proceedings could have been validly taken then because of subsequent lapse of time the said reassessment proceedings do not become barred by time - the reassessment of the escaped income of the assessment year 1996-97, without any express ‘finding’ or ‘direction’ can be made under Explanation (2) to Section 153 (3) and in a case where no express finding or direction is there, like the one in the order dated 12th August, 2002, the reassessment could be made u/s 153 (3) (ii) – Decided in favour of revenue. The assessee is deemed to have accepted the finding or direction that “thus closing stock value of work in progress, will necessarily be enhanced in the preceding year i.e., AY 1996-97” - Relying upon Hope (India) Ltd. Vs. CIT reported in [1990 (11) TMI 12 - CALCUTTA High Court] - the Explanation to section 153 clearly provides that, in any case where income is excluded in appeal, reference or revision, or in any other legal proceeding, from the assessment for any year, an assessment of such income for another assessment year shall be deemed to be one made in consequence of, or to give effect to, any finding or direction by the authority hearing the case - This fiction of law removes the bar of limitation, irrespective of the question whether the authority has in fact given or can in law give a finding or direction that the income should be taxed in a specified assessment year other than the year for which the authority hears the case - if any income from an assessment by a higher forum on the ground that it is not the income of that year, the Income-tax Officer has jurisdiction to initiate proceedings u/s 147 to assess it as the income of another year without any limitation applying to the issue of the notice u/s 148 or to the completion of the assessment or reassessment – Decided in favour of Revenue.
|