Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2018 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (2) TMI 768 - HC - Income TaxValidity of reopening of assessment - notice issued by AO u/s 148 beyond the 04 years - necessary approval of Chief Commissioner or CIT as per the provisions of Section 151(1) had not been obtained by the Assessing Officer -scope of amendment - Held that:- As quite obvious from a reading of the Board’s circular, issued on 31.10.1989 hat the Revenue authorities at a higher level existed and interpreted the amendments in the manner that the Calcutta High Court in East India Hotels Ltd. v. Deputy Commissioner of Income Tax (1992 (2) TMI 12 - CALCUTTA High Court) did. The arguments of the Revenue by laying emphasis on the expression “as aforesaid” appeared to have some force. However, a closer reflection would reveal that “as aforesaid” is capable of two interpretations – narrow – textual one as is urged on behalf of the Revenue and a broader one. In the contention of Section 151(1), the proviso when it refers to an Assessing Officer, could also mean not merely an Assessing Officer below the rank of Assistant Commissioner and Deputy Commissioner but also all Assessing Officers. The latter interpretation has been clearly followed by the Calcutta High Court – as well as the Revenue authorities. Yet one more reason which persuades us to reject the Revenue’s submission to disagree with the Calcutta High Court’s judgment which is that in the case of a non-assessment (i.e. when the assessment is framed under Section 143(1), a higher standard of approval of the Joint Commissioner is insisted upon. The interpretation given by the Calcutta High Court – where endorsed in this judgment, places even scrutiny assessment at par with such assessments and ensures that there is no disconnect and a minimum safeguard, by way of an opinion by the higher official expressing satisfaction is on the record before a notice is issued under Section 148, in respect of a period beyond 4 years from the end of the relevant assessment. - Decided in favour of assessee
|