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TMI Blog2012 (8) TMI 479X X X X Extracts X X X X X X X X Extracts X X X X ..... honourble CIT(A) ought to have sustained the addition made by the A.O. on account of unexplained investment made by the assessee. iii. The CIT(A) erred in allowing the appeal of the assessee on the grounds that he notice u/s.1 42(1) was issued beyond the prescribed time and in holding the assessment as not legally tenable and null and void. iv. The CIT(A) erred by not considering the amendment brought in section 142(1) w.e.f. 01.04.2006. v. Further, the CIT(A) erred in not taking into cognizance the proviso inserted after clause (i) of section 142(1) w.e.f. 01.04.2006. v. The CIT(A) failed to appreciate the fact that for issue of notice u/s. 148, the Assessing officer should have reason to believe that income chargeable to tax has esca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e proceedings before us, the learned counsel for the assessee, at the outset, mentioned that this is a case where notice under S.142(1) was issued on 29.8.2007 whereas the relevant assessment year, viz. 2005-06 ended on 31.3.2006. Thus, the assessing officer failed to issue the notice under S.142(1) of the Act, within the time stipulated by the statute, viz. by the end of the of the relevant assessment year. By issuing the notice subsequent to the time prescribed by the statute for making regular assessment under S.143/144 of the Act, the assessing officer travelled into the time generally applicable under the provisions of S.148 of the Act. In support of the argument of invalidity of the impugned notice, the learned Authorised Representati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reads as follows: "142(1) ...... Provided that where any notice has been served under this subsection for the purpose of this clause after the end of the relevant assessment year commencing on or after the 1st day of April, 1990 to a person who has not made a return within the time allowed under sub-section (1) of section 139 or before the end of the relevant assessment year, any such notice issued to him shall be deemed to have been served in accordance with the provisions of this sub-section."" From the above extraction of the proviso to S.142(1)(i) of the Act, it is clear that any notice served on the assessee after the end of the relevant assessment year shall be deemed to have been served in accordance with the provisions of S.142( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and it is not the case here that proceedings under S.144 read with S.142(1)(i) of the Act are simultaneously initiated, while the other proceedings under S.148 are in force or vice versa. Therefore, the citation relied on by the learned counsel for the assessee, Shri S.Rama Rao, is inapplicable. 8. In spirit, the issue raised is squarely covered by the coordinate Bench decision of this Tribunal in the case of Kausari Begum (supra). Para 3 of the said decision, relied upon by Learned Departmental Representative before us, reads as follows- "3. We have heard the rival contentions and perused the material available on record. The only issue to be decided in this appeal is whether notice u/s 142(1) issued after end of one year from the rele ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tes on clauses to the Finance Bill, 2006 is reproduced below:- "Clause 35 of the Bill seeks to amend section 142 of the Incometax Act relating to inquiry before assessment. The existing provisions contained in clause (i) of sub-section (1) of said section provide that where a person has not made a return of income within the time allowed under sub-section (1) of section 139, the AO may serve a notice on him requiring him to furnish the return of income. It is proposed to amend the said clause (i) so as to provide that where a person has not made a return of income before ht end of the relevant assessment year, the AO may serve a notice under this sub-section on him after the end of the relevant assessment year, requiring him to furnish r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A) was not correct in holding the issuance of notice u/s 142(1) to be ab initio void. Since the CIT (A) has decided the appeal on technical issue without going into merits of the case, we think it proper to set aside the matter to the file of the CIT (A) and direct him to dispose of the appeal on merits in accordance with law after affording a reasonable opportunity of being heard to the assessee." The above said decision of the Tribunal in the case of Smt.Kausari Begum (supra), which clinches the issue in favour of the Revenue and the same was not available to the CIT(A), as it was pronounced subsequently on 18.5.2012. In view of the non-consideration of the aspects relating to interpretation of the statutory provisions relating to S.142 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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