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2021 (6) TMI 409 - HC - Income TaxReopening of assessment u/s 147 - deemed assessment - earlier proceeding initiated was withdrawn - notice under Section 148 was issued before completion of the Assessment was dropped and thereafter, a fresh notice was issued based on the identical reasons - survey under Section 133A - survey revealed undisclosed income in terms of the valuable jewellery and cash - HELD THAT:- Since the petitioner failed to offer amount for payment of Income Tax in his return of income under Section 139 of the Income Tax Act, 1961, a notice dated 04.12.2015 was issued to the petitioner under Section 148 - The said notice was issued even before the time for completing the assessment expired on 31.12.2016 i.e, 21 month from the end of the assessment year 2013-14 under Section 153 (1) for the assessment year 2013-14. Having issued the aforesaid notice dated 04.12.2015 under Section 148 it was incumbent to have completed assessment within a period of nine months as per Section 153(2) of the Income Tax Act, 1961 from the date of issue of the said notice. Since the period of nine months expired on 03/04.09.2016 in terms of Section 153(2) which is three months before the last date for completing the assessment on 31.12.2016, the officer therefore could not have proceeded further after the expiry of the nine months on the strength of the said proceeding initiated on 04.12.2015 after the first week of the September, 2006. Thus, there was a deemed assessment. Thus, there is no infirmity in the impugned proceeding after the earlier proceeding initiated vide notice dated 4.12.2015 was withdrawn was withdrawn vide communication dated 26.12.2016. The respondent can issue a fresh notice under Section 148 of the Income Tax Act, 1961 which is what the respondent has done. It is to be emphasized that after 31.12.2016, the respondent had 4 years to invoke section 148 of the Income Tax Act 1961. Thus, the dropping of the earlier proceedings was only on account of technical reasons. It was not after a thorough scrutiny and consideration of the reply of the petitioner. It was withdrawn only for technical reason to pave way for issue of a fresh notice under Section 148 of the Income Tax Act, 1961 on 24.03.2017. The earlier proceedings initiated vide Notice dated 4.12.2015 was not dropped on merits. Issuance of earlier notice under Section 148 of the Income Tax Act, 1961 did not preclude issue of fresh notice under the same section on 24.3.2017. The petitioner has indulged in large scale evasion of tax as is evident from the survey conducted on 03.09.2012.Since the reassessment proceeding remained inconclusive, there is no case made for interference - No merits in these present writ petitions.
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