TMI Blog2014 (11) TMI 905X X X X Extracts X X X X X X X X Extracts X X X X ..... nths - in completing the assessment u/s 148 of the Act, compliance of the procedure laid down u/s 142 and 143(2) is mandatory - beyond notice u/s 142(1), there was no notice issued u/s 143(2), and the reassessment was the failure on the part of the assessee in not disclosing the capital gains arising on the transfer of property for assessment and that admittedly the assessee had requested the officer to accept the original return as a return filed in response to Section 148 of the Act, there was total failure on the part of the Revenue from complying with the procedure laid down under Section 143(2) of the Act, which is mandatory one – thus, the order of the Tribunal is upheld – Decided against revenue. - T.C.A. Nos. 582 & 583 of 2014, M. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t appeals :- Whether on the facts and in the circumstances of the case the Tribunal was right in holding that the assessment proceedings passed under Section 143 (3) r/w 147 is time barred on the ground that the notice under Section 143 (2) was issued beyond six months from the end of the financial year in which the return was furnished by relying on the proviso under Section 143 (2) (ii)? 4. Mr.Narayanasamy, learned standing counsel appearing for the appellant/Revenue submits that in terms of Proviso (1) and (2) to Section 148 of the Income Tax Act, notice under Section 143 (2) is saved by the 12 months limitation period and, therefore, the notice issued on the assessee is well within the period of limitation. However, the Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ything 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.]. 7. In Sapthagiri Finance Investments Vs Income Tax Officer (TCA No.159/06 dated 17.07.2012), a Division Bench of this Court held that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er contention of Mr.Narayanasamy, learned standing counsel for the Revenue that Proviso (1) to Section 148 is attracted to the case on hand is not sustainable. Proviso (1) to Section 148 is not attracted to the present case for the simple reason that the assessment in the present case is for the period 2007-2008, whereas the above proviso is applicable only for the period 1991 to 2005. For better appreciation, Section 148 (2) is extracted hereinbelow :- Issue of notice where income has escaped assessment. 148. [(1)] Before making the assessment, reassessment or recomputation under section 147, the Assessing Officer shall serve on the assessee a notice requiring him to furnish within such period, as may be specified in the notice, a re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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