TMI Blog2012 (11) TMI 664X X X X Extracts X X X X X X X X Extracts X X X X ..... n the result, since these provisos retrospectively made with effect from 1/10/1999 that would indicate that the provisos are transitional in character merely validating those notices in respect of re-assessment proceedings but otherwise not disturbing the law being limited upto 30/09/2005 but nothing to apply a return furnished on or after 1st day of October-2005. Apparent mistake so as to rectify u/s.254(2) - held that:- while deciding this appeal the Tribunal had only limited scope and ought to remain confined to the observation of the Tribunal as expressed vide an earlier order dated 22/03/2005. Firstly, those directions were meant for the A.O. and secondly, the applicable provisions of section 148 were not either referred or consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... will have to issue a notice under section 143(2). Such notice can be issued within 12 months from the end of the month in which the return in response to notice under section 148 was submitted. If however, such return was submitted during October 1, 1991 and September 20,2005, scrutiny notice can be issued even after the expiry of 12 months but it cannot be issued after the expiry of time-limit for completion of reassessment under section 153(2). 2. From the side of the Revenue, ld.DRs Mr.Shelley Jindal Mr.B.L.Yadav appeared and stated that a mistake was committed by the Tribunal by holding that the notice u/s.143(2) was issued beyond the time prescribed. He has also mentioned that the reliance placed on the decision of the Special Ben ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, serve on the assessee a notice specifying particulars of such claim of loss, exemption, deduction, allowance or relief and require him, on a date to be specified therein to produce, or cause to be produced, any evidence or particulars specified therein or on which the assessee may rely, in support of such claim : [Provided that no notice under this clause shall be served on the assessee on or after the 1st day of June, 2003;] (ii) notwithstanding anything contained in clause (i), if he considers it necessary or expedient to ensure that the assessee has not under-stated the income or has not computed excessive loss or has not under-paid the tax in any manner, serve on the assessee a notice requiring him, on a date to be specified ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t assessment is not only an assessment u/s.143(3) but an assessment when the case was re-opened and a notice u/s.148 was issued. It appears that the Tribunal has lost the sight of the fact that this is the case of reassessment since undisputedly a notice u/s.148 was issued and served on 29/02/1996. The settled law is that re-assessment has also to follow the same procedure as to be applied for completion of a regular assessment. Law subscribes a similar notice u/s.143(2) required to be issued even for re-assessment. The Tribunal has therefore confined to the proviso annexed to Section 143(2)(ii) of IT Act and under that impression has held that the re-assessment proceedings, as well, were to be initiated within one year from the end of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch he is assessable under this Act during the previous year corresponding to the relevant assessment year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed; and the provisions of this Act shall, so far as may be, apply accordingly as if such return were a return required to be furnished under section 139:] [Provided that in a case (a) where a return has been furnished during the period commencing on the 1st day of October, 1991 and ending on the 30th day of September, 2005 in response to a notice served under this section, and (b) subsequently a notice has been served under sub-section (2) of section 143 after the expiry of twelve months specified in the provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2) is issued before the expiry of the time limit as prescribed in 2nd proviso(b) for making the re-assessment, even if had been issued beyond the one year time limit from the date of the filing of the return, the effect of this amendment is to validate all those notices. In the result, since these provisos retrospectively made with effect from 1/10/1999 that would indicate that the provisos are transitional in character merely validating those notices in respect of re-assessment proceedings but otherwise not disturbing the law being limited upto 30/09/2005 but nothing to apply a return furnished on or after 1st day of October-2005. 5. In view of the above discussion, we can hold that a correct law has to be applied to arrive at the correc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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