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TMI Blog2014 (6) TMI 568X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment made by the AO u/s 147/148, which being invalid and untenable in law and on facts of the case be kindly cancelled." 3. We have heard the arguments of both the sides and perused relevant material placed before us. The reasons recorded for reopening of assessment read as under:- "Dated 29.3.2005 Shri Dheer Singh 22 - New Arya Nagar, Meerut. Assessee has filed return of income as per following details:- Asstt. Year 1998-99 1999-2000 2000-2001 Income declared 2,10,000/- 4,89,460/- 5,49,480/- Agricultural Income 2,50,000/- 3,00,000/- 4,50,000/- Date of filing of return 29-11-98 10-03-2000 30-01-2001 Return was processed u/s 143(1). The assessee has shown agricultural income on estimated basis. The assessee was give ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IV of the Finance Act. Considering the above facts I have reason to believe that the assessee has furnished inaccurate particulars of his agricultural income and to the extent indicated above, and to tax such escaped income action u/s 147 for the assessment are necessary. Whereas I have reason to believe that in respect of which agricultural income shown at Rs.2,50,000/-, 3,00,000/- and 4,50,000/- chargeable to tax for the Asstt. Years 1998-99, 1999-2000 & 2000-2001 respectively has escaped assessment within the meaning of section 147 of the Income Tax Act, 1961. Issue notice u/s 148 of the Income Tax Act, 1961. Accordingly approval from Additional Commissioner of Income Tax/Commissioner of Income Tax is being taken. (Saroj Kumar Dubey) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee 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 understated 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 therein, either to attend his office or to produce, or cause to be produced, any evidence on which the assessee may rely in support of the return: [Provided that no notice under clause (ii) shall be served on the assessee after the expiry of six months from the end of the financial year in which the return is furnished.]]." 5. From the above, it is evident that clause (ii) of sub-section (2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al income disclosed and he wanted to verify the same, he ought to have issued notice under Section 143(2)(ii) within the time limit permissible under the proviso to above sub-section. Having failed to issue the notice under Section 143(2)(ii) with the period of limitation, Section 148 cannot be invoked to get the extended time limit for verification of the correctness of the income returned. In view of the above, we are of the opinion that issue of notice under Section 148 was not valid. The same is quashed. Consequentially, the assessment order passed in pursuance to notice under Section 148 is also quashed restoring the original assessment order. 5.1 The assessee has raised various grounds challenging the addition made in the order of re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... justified in estimating the agricultural income at Rs.1,00,000/- in AY 2001-02 and Rs.59,553/- in AY 2003-04. We find that at page 48 and 49 of the paper book, the assessee has enclosed the copy of the letter written by the assessee to Tehsildar for issuing certificate of agricultural income. At the bottom of the letter itself, the Tehsildar has certified the agricultural income of the assessee at Rs.3,50,000/-. Considering the totality of facts and arguments of both the sides, in our opinion, it would meet the ends of justice if the agricultural income of the assessee is estimated at Rs.3,50,000/- in both the years. Accordingly, the addition is sustained at Rs.2,50,000/- in AY 2001-02 (Rs.6,00,000 - Rs.3,50,000) and Rs.3,50,000/- in AY 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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