9911796707
TMI Blog2012 (12) TMI 746X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer - Hoshiarpur 2, Hoshiarpur upon assumption of valid jurisdiction under section 148 of the Income Tax Act, 1961. 1.1. That on the facts & circumstances of the case, Learned Commissioner of Income Tax (Appeals), Jalandhar has grossly erred in law in rejecting the contention of the appellant that the initiation of proceedings under section 148 of the Act is illegal and void ab initio since the machinery for assessment was already set in motion by the Ld. AO by issuance of notice u/s 142(1) of the Act. 1.2. That on the facts & circumstances of the case, Learned Commissioner of Income Tax (Appeals), Jalandhar has grossly erred in law in not appreciating the full facts and law laid down by the Hon'ble Jurisdictional Punjab and H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Ld. AO. The Ld. CIT(A) has not allowed proper opportunity to the appellant to explain his case. 3. That the appellant requests for leave to add or amend the grounds of appeal before the appeal is heard or disposed off." 3. The Ld. counsel for the assessee, Sh. Surinder Mahajan, CA, first of all prayed to decide the legal grounds 1 to 1.3. The Ld. counsel for the assessee has argued and submitted that : "1 Sequence of events has been given at page 3 of the paper book as per which on receipt of information, statement of assessee was recorded on 21.03.2006 and 30.11.2006 ( copies enclosed at page 15- 20 & 22-23 of paper book) by issue of notice dated 10.03.2006 and 26.04.2006 ( copies enclosed at page 12 & 21 of paper book). Notice dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this Act, the Assessing Officer may serve on any person who has made a return or in who's case the time allowed u/s 139(1) of the Act for furnishing the return has expired". Reliance is being placed on: a) CIT vs. M.P.Singh (2008) 217 CTR (P&H) 487 b) KLM Royal Dutch Airlines vs. Assistant Director of Income Tax, 292 ITR49(Del.) c) Smt. Nilofer Hameed & Anr. Vs. ITO 235 ITR 161 (Ker) d) CIT vs. Sooraj Mull Nagarmall 141 ITR 140 (Cal) e) H. Gouthamchand vs. Addl. CIT 40 DTR 440 (Bang) f) Asstt. Commr. of Income Tax vs. Subhash Chand Goyal 4 SOT 405 (Agra) Judgment of Hon'ble Supreme Court in the case of KM Sharma vs. ITO 254 ITR 772 (SC) also supports the above views. 4. That initiation of proceedings u/s 148 of the Act is illegal a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a date to be specified therein, either to attend his office or to produce or cause to be produced there, any evidence on which the assessee may rely in support of the return. It means that notice u/s 143(2) of the Act is to be issued when AO is not satisfied with the return filed by the assessee. Assessing Officer while issuing notice u/s 142(1) of the Act was aware of sale & purchase of the property in question and on receipt of the return in response to notice u/s 142(1) of the Act opted not to issue any notice u/s 143(2) of the Act. No notice u/s 148 of the Act can be issued. 6. As regards contention of the assessee that notice u/s 148 of the Act is bad in law because it amounts to review. Ld. CIT(A) has rejected his ground of appeal a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 and para 2 of the assessment order. The return was processed under section 143(1) of the Act, on 20.03.2007. The AO recorded the reasons by issuing notice under section 148 of the Act on 23.05.2008. In response to notice u/s 148, the assessee filed return on 23.06.2008. Return was processed on 09.07.2008 and assessment was framed on 26.12.2008. As the facts are on record that on receipt of information from CIT, Jalandhar, that the assessee had sold plot at village Lohgarh, notices dated 10.03.2006 and 26.04.2006 were issued to the assessee to attend the office of the A.O. on 21.03.2006 and 02.05.2006. The statement of the assessee was recorded on 21.03.2006 and 30.11.2006 wherein certain queries were raised on the assessee with regard to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t under this Act, the AO was required to complete the assessment u/s 143(3) of the Act without issue of notice u/s 148 of the Act, on or before the expiry of period ending on 31.12.2008 under section 143(3) of the Act. Though assessment has been made in the present case on 26.12.2008 - with out issuing notice under section 143(2) of the Act. At the same time, the AO cannot enter into jurisdiction for reassessment u/s 147/ 148 of the Act when there was time left for completion of assessment under section 143(3) of the Act, for which notice under section 142(1) had already been issued and the assessment proceedings had already been started. Therefore, the notice issued u/s 148 of the Act by the AO was bad in law and therefore, assessment so ..... X X X X Extracts X X X X X X X X Extracts X X X X
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