TMI Blog2010 (10) TMI 864X X X X Extracts X X X X X X X X Extracts X X X X ..... al before the Tribunal, the AO should necessarily issue a notice under s. 148 and should have completed assessment under s. 147. Since, in this case, it is apparent that no notice under s. 148 has been issued, orders of CIT(A) set aside, who has confirmed the orders of the AO passed under s. 254 r.w s. 153(3)(ii), as the AO has no jurisdiction in passing the said order for the asst. yr. 1998-99, quashed the assessment order for the asst. yr. 1998-99, the consequential orders passed in the subsequent assessment years have become infructuous and the same are hereby also quashed, all the appeals of the assessee are allowed. - ITA NOS. 1352 TO 1357 (KOL.) OF 2010 - - - Dated:- 8-10-2010 - B.R. MITTAL, AND C.D. RAO, JJ. S.K. Tulsiyan for the Appellant. P.K. Mishra for the Respondent. ORDER C.D. Rao, Accountant Member These appeals are preferred by the assessee against the order of the CIT(A), Siliguri, dt. 7th May, 2010 for the asst. yrs. 1998-99 to 2003-04. Since all the appeals pertain to the same assessee, hence, they are disposed of by this common order for the sake of convenience. 2. Brief facts of this case are that the AO passed an order under s. 153(3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... within the scope of its jurisdiction. Sec. 150 is not an independent section entailing upon the AO any jurisdictional powers of assessment. All the powers of reassessment are solely conferred by the s. 147 of the Act r/w s. 148 of the Act. He further relied on several case law in support of his submissions. However, the learned CIT(A) confirmed the action of the AO by observing as under : "I have carefully considered the submissions of the learned Authorised Representative and also perused the assessment order. Regarding the various objections raised by the learned Authorised Representative, it may be stated that it is the repetition of the arguments made before the learned AO and the learned AO) has rejected the same with proper and reasonable arguments. But before deciding the case, it is pertinent to highlight the following facts which stand out loud and clear : 1. That the assessee has indeed received the transport subsidy amount under dispute. 2. That it is very much a revenue receipt taxable in the year of accrual which in the assessee's case is asst. yr. 1998-99 and consequent tax effect for the subsequent years. 3. And that the assessee has nowhere, at any point of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lla Jeevaji Kapasi [1967] 66 ITR 147 (SC). The learned counsel further submitted that although the AO has made the alleged reassessment in the ease of the assessee vide his order dt. 7th Dec., 2009, yet he seems to be confused regarding the section under which the same should be done. In the first letter dt. 29th May, 2008 issued on the assessee-company, proposing the said reassessment, the learned AO had stated the following : "4.1.1 As per finding of the Hon'ble Tribunal the transport subsidy received by you should be taxed in the asst. yr. 1998-99 by applying the provision of s. 150 r.ws. 153(3) of the IT Act, 1961..." 5.1 From the aforesaid it is seen that it was proposed by the learned AO vide his first letter, to make assessment in the assessee's case by applying s. 150 of the Act read with s. 153(3) of the Act, however without the issuance of the notice under s. 148. In reply to the above letter issued by the learned AO a detailed submission was filed before the AO by the assessee vide its letter dt. 23rd June, 2008, enclosed at pp. 25-32 of the paper book, explaining therein that the said s. 150(1) of the Act did not apply in the case of the assessee. It was duly explai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee's case in as much as in the case of M.K. Thakker (supra) it was held that "while considering an appeal in respect of an assessment year, a direction regarding another assessment year does not fall within s. 153(3). The purpose of s. 153(3) is to lift the bar of limitation to make an effective order of assessment, consequent upon an appellate order. Sec. 153(3) does not create a new power or jurisdiction". This clearly brings out that no assessment can be made under s. 153(3). In view of this, he submitted that order passed by the AO under s. 254 r/w s. 153(3)(ii) of the IT Act, 1961 was ultra vires and illegal. Therefore, he requested to quash the orders of the Revenue authorities. 6. On the other hand, the learned Departmental Representative relied on the orders of the Revenue authorities. 7. After hearing the rival submissions and on careful perusal of the materials available on record, the first question involved in this issue is while giving effect of the Tribunal's order other than the assessment year involved, the notice under s. 148 as contemplated under s. 150 is applicable to the case of the assessee or not. For this purpose, we have perused the relevant sect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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