TMI Blog2007 (6) TMI 143X X X X Extracts X X X X X X X X Extracts X X X X ..... nai in I.T.A. No.1147(Mds)/2005 dated 04.08.2006 raising the following substantial question of law : "Whether in the facts and circumstances of the case, the Tribunal was right in holding that reassessment made under Section 143(3) r/w 147 is bad in law ?" 2. The facts leading to the above substantial question of law are as under : The assessee is a Company. The relevant assessment year is 1999-2000 and the corresponding accounting year ended on 31.03.1999. The Assessing Officer completed the assessment under Section 143(3) of the Income-tax Act ("Act" in short) on 27.03.2002. The assessee had disclosed all material facts necessary for the assessment and the Assessing Officer had considered the same and completed the assessment u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2003] 264 ITR 566 and held that there is no failure on the part of the assessee to disclose material facts and hence reassessment proceedings after the expiry of four years is not possible in view of the provisions of Section 147 of the Act. Admittedly, the reassessment proceedings are initiated after a period of four years. The scope of the said proviso to Section 147 of the Act has been considered by this Court in the case of Commissioner of Income-tax Vs. Elgi Finance Ltd., [2006] 286 ITR 674 reported in, and the same reads as follows: "The law relating to the reassessment has undergone a change from April 1, 1989. The change was brought in by the Direct Tax Laws (Amendment) Act, 1987. Two sets of provisions were available u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 142 or section 148 or to disclose fully and truly all material facts necessary for his assessment for that assessment year." In addition to the time-limits provided for under section 149, the law has provided another limitation of four years under the proviso to section 147. As far as the above proviso to section 147 is concerned, the law prescribes a period of four years to initiate reassessment proceedings, unless the income alleged to have escaped assessment was made out as a result of failure on the part of the assessee to disclose fully and truly all material facts necessary for the assessment." 5. In the present case, the Tribunal had considered the above proviso to Section 147 of the Act and held as follows : "Even now, be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l facts. Further, all the material facts are available at the time of making original assessment. The Tribunal has correctly followed the principles enunciated in the Supreme Court judgment reported in 264 ITR 566 cited supra, as well as this Court judgment reported in, the case of Commissioner of Income-tax Vs. Elgi Finance Ltd. [2006] 286 ITR 674 and came to the correct conclusion. 7. Under these circumstances, we do not find any error or legal infirmity in the order of the Tribunal so as to warrant interference. In view of the same, no substantial questions of law arise for consideration of this Court and accordingly the tax case is dismissed. Consequently, M.P.No.1 of 2007 is closed. No costs. - - TaxTMI - TMI ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
