2008 (10) TMI 16 - HC - Income Tax

Re-assessment proceedings under Section 147/143(3) validity- no new material had come before the Assessing Officer which could have enabled him to have reasons to believe that any income had escaped assessment - re-consideration of the material already available on record at the time of completion of the original assessments is not justified - Consequently the re-assessment completed by the Assessing Officer under Section 147/143(3) are quashed revenue s appeal dismissed

Summary

Issues:
1. Validity of re-assessment proceedings under Section 147/143(3) of the Income Tax Act, 1961.

Analysis:
The appeal before the High Court was against the order of the Income Tax Appellate Tribunal regarding the assessment year 1998-99, specifically focusing on the validity of re-assessment proceedings under Section 147/143(3) of the Income Tax Act, 1961. The Tribunal found that the re-opening of the assessment was not justified as no new material had been presented to the Assessing Officer to believe that any income had escaped assessment. The Tribunal highlighted that the letter relied upon by the department as new information was dated before the completion of the original assessment, rendering it invalid for re-assessment purposes. Relying on the Supreme Court decision in India and Easter Newspaper Society vs. CIT, the Tribunal concluded that the re-opening of assessments was not warranted under the law and subsequently quashed the re-assessment completed by the Assessing Officer.

The High Court concurred with the Tribunal's decision, emphasizing that no interference was necessary as the Tribunal had correctly interpreted the law. The High Court further stated that no substantial question of law arose for consideration, leading to the dismissal of the appeal. The judgment was delivered by Hon'ble Mr. Justice Badar Durrez Ahmed and Hon'ble Mr. Justice Rajiv Shakdher, affirming the Tribunal's decision and upholding the quashing of the re-assessment completed by the Assessing Officer under Section 147/143(3) of the Income Tax Act, 1961.