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2021 (6) TMI 146 - HC - Income TaxReopening of assessment u/s 147 - addition u/s 40A(3) - HELD THAT:- In the case on hand, admittedly, the Department had filed an appeal before the ITAT questioning the order passed by the appellate authority in favour of the assessee. When the appeal proceedings are still pending, it is clearly not open to the respondent to initiate proceedings u/s 147 of Income Tax Act. It is barred under third proviso to Section 147 of the Act. On this sole ground, the notice impugned in the writ petition is liable to be quashed and it is accordingly quashed. The petitioner has today filed a typed set of papers. It can be seen therefrom that one of the petitioner's agent namely Kannan, Pollachi had given a certificate confirming that he had acted as agent for the petitioner and that the amount required for the payment to the farmers was received from the petitioner by self cheque and the same was distributed to the farmers who supplied copra. In fact, along with the said certificate, the details regarding the bank transactions as reflected in the ledger account has also been placed. Appearing for the petitioner would also draw my attention to the fact that even the Pollachi bank account of the petitioner was brought to the notice of the assessing officer in the previous proceedings. It is obvious there is no new material discovered by the respondents. On mere change of opinion, the impugned proceedings could not have been initiated. This is all the more so because, the proceedings have been initiated after a lapse of four years from the end of the assessment year. Since the impugned proceedings are sought to be initiated after a lapse of four years from the end of the assessment year, the authority has to necessarily bring the case within the exceptional circumstances set out in the provision. Since it has been convincingly established that the case of the respondent will not fall under any of the exceptional circumstances, have no hesitation to quash the impugned proceedings as totally lacking in jurisdiction.
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