TMI Blog2016 (3) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... d. As far as the objection of the assessee regarding absence of consent under section 151(1) proviso is concerned, it cannot be said that there was any assessment done in the case of the assessee pursuant to the first notice under section 148. Only an intimation under section 143(1)(a) was issued. The decisions referred to by the learned CIT(A) on this issue clearly support the view that intimation under section 143(1)(a) is not assessment. Therefore, the provision of Section 151(2) alone would apply to the present case. Therefore, consent under section 151(1) for issue of notice under section 148 has rightly held by the CIT(A) and ITAT to be not necessary Examining the issue on merits relating to taxability of only 50% in the hands of the assessee whatever be the nature of the money received by the assessee, the same was in the nature of income liable to tax. The CIT(A)'s direction to bring to tax this sum in the assessment year in which the assessee received these sums and also confirmed by ITAT was proper and calls for no interference - Decided against assessee - ITA No. 143 and 166 of 2005 (O&M) - - - Dated:- 13-1-2016 - MR. AJAY KUMAR MITTAL AND MRS. RAJ RAHUL GARG, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ived by him? 3. Briefly, the facts as available on the record of ITA No.143 of 2005 may be noticed. The assessee is an individual. For the assessment year 1991-92, the assessee did not file his return. Notice under section 148 of the Act dated 22.2.1994 was issued by the Assessing Officer to the assessee for the purpose of bringing to tax a sum of ₹ 73,132/- which he had received as interest from M/s Kevikon Agro Farming (P) Limited on the deposit of the sale consideration received on sale of his agricultural land. In response to this notice, the assessee filed his return on 19.3.1996. Intimation under section 143(1)(a) of the Act was issued on 22.3.1996. The Assessing Officer issued another notice under section 148 of the Act on 17.3.1997 for the purpose of bringing to tax a sum of ₹ 2 lacs which the assessee received as commission from one C.P. Singh of Rama Finance Company. In response to this notice, the assessee did not file any return of income. Two notices under section 142(1) of the Act were issued but there was no compliance by the assessee. The assessment was therefore completed under section 144 of the Act vide order dated 30.3.1999, Annexure P.3 by bringi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee being 50%, only ₹ 1 lakh fell to his share. On the other hand, learned counsel for the revenue besides supporting the order of the Assessing Officer, CIT(A) and the Tribunal submitted that the case of the assessee fell under Section 151(2) of the Act and not under sub section (1) of Section 151 of the Act. 6. It would be expedient to quote Section 151 of the Act which is in the following terms:- Sanction for issue of notice. 151. (1) In a case where an assessment under sub-section (3) of section 143 or section 147 has been made for the relevant assessment year, no notice shall be issued under section 148 by an Assessing Officer, who is below the rank of Assistant Commissioner or Deputy Commissioner, unless the Joint Commissioner is satisfied on the reasons recorded by such Assessing Officer that it is a fit case for the issue of such notice : Provided that, after the expiry of four years from the end of the relevant assessment year, no such notice shall be issued unless the Chief Commissioner or Commissioner is satisfied, on the reasons recorded by the Assessing Officer aforesaid, that it is a fit case for the issue of such notice. (2) In a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vs. Union of India and another And Anil Kapoor vs. ITO and another, (1996) 220 ITR 248 (Delhi). (ii) Pardeep Kumar Harsaran Lal vs. Assessing Officer, (1997) 94 Taxman 124 (All) and (iii) CIT vs. KV Manakram Co. (2000) 111 Taxman 439 Kerala. concluded that the processing of return under Section 143(1)(a) of the Act even in pursuance to notice under Section 147 of the Act did not result into an assessment. It may be noticed that the judgment of the Delhi High Court in Apogee International Limited's case (supra) was quoted with approval by the Apex Court in Assistant Commissioner of Income Tax vs. Rajesh Jhaveri Stock Brokers Pvt. Limited, (2007) 291 ITR 500. Once that was so, sub section (1) of Section 151 of the Act was not attracted. It has been categorically recorded by the Tribunal that first notice under section 148 of the Act dated 22.2.1994 was served on the assessee on 7.3.1994 in response to which he filed his return on 19.3.1996. The proceedings for reassessment commenced by the issue of first notice could be completed only upto 31.3.1996 in view of the provisions of section 153(2) of the Act. As on 31.3.1996, the Assessing Officer did not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed with the following observations:- 9. What now remains for consideration is ground No.5 which reads as follows: 'That without prejudice to the above stated grounds of appeal and merits of the case it is submitted that the action of the learned CIT(A) was not justified to tax the amount of commission income of ₹ 2,05,805/- on receipt basis and not on accrued basis and that too without dividing the same in the ratio of 50:50 as the land in question was jointly sold by appellant alongwith his brother who was also co-owner of the land . 10. The admitted facts are that the assessee sold his lands to one M/s DLF. The sale was mediated through one Mr. CP Singh of M/s Pawan Co. Pvt. Limited over and above the sale consideration received by the assessee from Mr. CP Singh on the following dates: On 31.3.1991 Rs.55,804/- On 22.7.1992 Rs.1,50,000/- Rs.2,05,804/- 11. The plea of the assessee was that this sum was commission which CP Singh paid to him from and out of the commission which he received from DLF. The plea of the assessee with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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