9911796707
TMI Blog2010 (10) TMI 805X X X X Extracts X X X X X X X X Extracts X X X X ..... , the Tribunal was right in law in annulling the assessment ignoring that in view of amended provisions of ss. 143(1) and 148 to 153 of the IT Act, 1961 brought in by the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 1987 according to which failure to take steps under s. 143(3) of the Act does not take away the jurisdiction of the AO to tax the income escaping assessment by initiating proceedings under s. 147 of the IT Act, 1961?" 2. Return of the assessee for the asst. yr. 2004-05 was processed under s. 143(1) of the Act but thereafter, finding that some income had escaped assessment, notice under ss. 148 of the Act was issued to the assessee and assessment was completed under s. 143(3) of the Act, making addition on account of capi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had been received by the AO after the expiry of limitation fixed for framing the original assessment. In the present case, the AO had attempted to travel the path of s. 147 in the vain attempt to enlarge the time available for framing the assessment. This is not permissible in law. But what cannot be done directly that cannot be done indirectly." 3. We have heard learned counsel for the parties and perused the record. 4. Learned counsel for the Revenue submitted that the Tribunal erred in taking the view that without resorting to s. 143(2) of the Act, power under s. 147 of the Act cannot be invoked. Judgment in Nizam's Supplemental Family Trust (supra) was clearly distinguishable. Power under s. 147 of the Act is wide and i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all material facts necessary for his assessment of that year. Both these conditions were conditions precedent to be satisfied before the AO could have jurisdiction to issue notice under s. 148 r/w s. 147(a). But under the substituted s. 147 existence of only the first condition suffices. In other words if the AO for whatever reason has reason to believe that income has escaped assessment it confers jurisdiction to reopen the assessment. It is, however, to be noted that both the conditions must be fulfilled if the case falls within the ambit of the proviso to s. 147. The case at hand is covered by the main provision and not the proviso. 18. So long as the ingredients of s. 147 are fulfilled, the AO is free to initiate proceeding und ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
