TMI Blog2005 (7) TMI 544X X X X Extracts X X X X X X X X Extracts X X X X ..... admitted by this Tribunal are as under : ( i )That the initiation of proceedings in the instant case by the issue of a notice under section 148 of the Income-tax Act, 1961, for the assessment year 2000-01 is without jurisdiction and therefore bad in law. ( ii )That the assessment made on the basis of the notice under section 148 is therefore bad in law. 3. The brief facts pertaining to the case are that the assessee was the Managing Director of the company M/s. Peninsula Polymers Ltd., Trivandrum. It appears that the assessee had filed his return of income for assessment year 2000-01 on 31-8-2000. It further appears that his return was processed under section 143(1) on 28-3-2000 accepting the income returned. Subsequently, re-assessment proceedings were initiated against the assessee by issue of notice under section 148 to the assessee. The assessment of the assessee was completed under section 143(3) read with section 148 on 15-3-2004 determining the total income of the assessee at Rs. 4,09,69,360. 4. The assessee challenged the re-assessment proceedings by filing appeal to the CIT(A). The CIT(A) decided the appeal vide his order dated 6-12-2004. Being aggrieved by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e starting point for the good assessment in this case. On enquiry with the Assessing Officer, I find that the note has been put up by Shri G.R. Madhusoodanan Nair, Senior Tax Assistant. Kudos to the alacrity and work involvement exhibited by this official in this case." 8. Then the ld. counsel laid emphasis on the observation of the CIT(A) that "the note put up by the dealing officer in the order sheet has been the starting point for the good assessment in this case. On enquiry with the Assessing Officer, I find that the note has been put up by Shri G.R. Madhusoodanan Nair, Senior Tax Assistant". The ld. Advocate submitted that assumption of jurisdiction under section 147 is a very crucial issue involved in this appeal. It appears from the observation of the CIT(A) that one Shri G.R. Madhusoodanan Nair, Sr. Tax Assistant had put up some note and on the basis of the said note, the re-assessment proceedings against the assessee were initiated. The ld. Advocate further submitted that the contents of the said note which was put up by Shri Madhusoodanan to the Assessing Officer are very much relevant to examine whether the mandatory conditions for initiation of the re-assessment pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Assessing Officer has no right for seeking the direction of this Tribunal as the reasons for the re-opening of his case were communicated to him. The DR further submitted that the Assessing Officer has no objection for producing the documents required by the assessee before the Tribunal and no privilege is also claimed but he has got objection to inspection of the record and documents by the assessee or by his Advocate, which have not been used as evidence in the order under appeal. He also submitted that the assessee has a right to contend that the reasons for forming the belief that income escaped assessment were not based on adequate materials on record before the Assessing Officer at the relevant time and in such a situation, the assessee may have the right under section 255(6) of the IT Act to invoke the jurisdiction of the Tribunal as civil court to ask the respondent to place before the Tribunal the materials on which the Assessing Officer formed the belief that income had escaped assessment and also that the assessee can be allowed an opportunity to examine the same documents. He has also taken us through paras 8 and 9 of the order of the CIT(A) where the CIT(A) has made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essing Officer for producing the relevant record if this Tribunal desires the same for disposing of the appeal. We would like to reproduce here section 255(5) and (6) which are as under: "S. 255(1) to (4) ****** (5) Subject to the provisions of this Act, the Appellate Tribunal shall have powers to regulate its own procedure and the procedure of Benches thereof in all matters arising out of the exercise of its powers or of the discharge of its functions, including the places at which the Benches shall hold their sittings. (6) The Appellate Tribunal shall, for the purpose of discharging its functions, have all the powers which are vested in the income-tax authorities referred to in section 131, and any proceeding before the Appellate Tribunal shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 and for the purposes of section 196 of the Indian Penal Code (45 of 1860), and the Appellate Tribunal shall be deemed to be a civil court for all the purposes of section 195 and Chapter XXXV of the Code of Criminal Procedure, 1898 (5 of 1898)." Though the Tribunal is not tax authority but for discharging its functions the Tribunal has been vested with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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