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2016 (6) TMI 551 - ITAT CHANDIGARH

2016 (6) TMI 551 - ITAT CHANDIGARH - TMI - Reopening of assessment - Time limit of initiating scrutiny assessment u/s 143(2) is not expired - reasons to believe - Held that:- Assessing Officer in issuing notice under section 148 of the Act, within the time limit available for issue of notice under section 143(2) of the Act being as per law. The Income Tax Act is a self contained Act, whereby provisions are made for different situations. Every section, sub-section, clause, proviso, Explanation, e .....

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escapement of income is not one of the conditions for issue of notice under section 143(2) of the Act. A limited time is available for issue of notice under section 143(2) of the Act and also to complete assessment under section 143(3) of the Act initiated through notice under section 143(2). While an extended period is available for issue of notice under section 148 of the Act and to make assessment initiated by issue of such notice. Apart from this, we also feel that every provision of the Ac .....

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made on issue of notice under section 148 of the Act has limited as against the wide scope of assessment available to him by issuing notice under section 143(2) of the Act.

CIT Vs. K.M. Pachaiyappan (2007 (7) TMI 229 - MADRAS HIGH COURT ), wherein the Court has held that no reassessment proceedings could be initiated so long as the assessment proceedings pending on the basis of return already filed are not terminated. Respectfully following the above case, we hold that the notice iss .....

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l, DR for the Respondent. ORDER Rano Jain, Accountant Member - The cross appeals filed by the assessee and the Revenue are directed against the order of learned Commissioner of Income Tax (Appeals)-II, Ludhiana dated 29.4.2008 for assessment year 2002-03 passed under section 250(6) of the Income Tax Act, 1961 (in short 'the Act) and the appeal of the assessee in ITA No. 1136/Chd/2011 is directed against the order of learned Commissioner of Income Tax (Appeals)-II, Ludhiana dated 14.9.2011 fo .....

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ue, we intend to take up that first. The facts of the case relevant to the extent of adjudicating this ground are that in this case pertaining to assessment year 2002-03, the assessee filed return of income as on 30.10.2002. This return got revised as on 31.3.2004 and the return was processed under section 143(1) of the Act as on 28.2.2004. A notice under section 148 of the Act was issued to the assessee as on 28.5.2004. 4. Before the learned CIT (Appeals), a objection was raised by the assessee .....

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laid down as under what circumstances return accepted under section 143(1) could be reopened. Therefore, it is not that the return processed under section 143(1) of the Act could be taken for scrutiny only by issuing notice under section 143(2) of the Act within the prescribed time of twelve months from the date of filing of return. In this way, he dismissed the ground raised by the assessee. 5. The learned counsel for the assessee during the course of hearing before us stated that the assessee .....

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ection 143(2) of the Act. It was argued that once the Assessing Officer had time available with her to issue notice under section 143(2) of the Act, she is not authorized to issue notice under section 148 of the Act. Reliance was placed on Third Member order of the Tribunal in the case of Super Spinning Mills Ltd. Vs. ACIT (2010) 38 SOT 14(TM) and another order of the Tribunal in the case of ACIT Vs. Subhash Chand Goel (2005) 45 SOT 405. Two judgments of Madras High Court in the cases of CIT Vs. .....

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that even if the Assessing Officer has wrongly issued notice under section 148 in place of notice 143(2) of the Act, it was just an irregularity and is curable and not fatal to the formation of assessment order. 7. We have heard the learned representatives of both the parties, perused the findings of the authorities below and considered the material available on record. The undisputed facts of the case are that the assessee had filed return for assessment year 2002-03 as on 30.10.2002. The retu .....

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the assessment, whichever is earlier : Provided that where the return relates to the previous year relevant to the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year, the reference to one year aforesaid shall be construed as a reference to two years from the end of the relevant assessment year.] 8. In said circumstances, we also observe that time available with the Assessing Officer for issuing notice under section 143(2) of the Act is up to 31.3.2005 i.e. w .....

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lable to the Assessing Officer upto 31.3.2005 for issuing of notice under section 143((2) of the Act. This period is computed as twelve months from end of the month in which the assessee had filed revised return. Since we observe that in the provisions of section 143(2) of the Act as is stood at the relevant time was twelve months from the end of the month, in which the return is furnished. Since the term 'return' has not been stated to be under any particular head whether regular return .....

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ances, the Assessing Officer could have voluntarily issued notice under section 148 of the Act or not. 11. We do not find the act of the Assessing Officer in issuing notice under section 148 of the Act, within the time limit available for issue of notice under section 143(2) of the Act being as per law. The Income Tax Act is a self contained Act, whereby provisions are made for different situations. Every section, sub-section, clause, proviso, Explanation, etc. are put in the Act at their respec .....

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e conditions for issue of notice under section 143(2) of the Act. A limited time is available for issue of notice under section 143(2) of the Act and also to complete assessment under section 143(3) of the Act initiated through notice under section 143(2). While an extended period is available for issue of notice under section 148 of the Act and to make assessment initiated by issue of such notice. Apart from this, we also feel that every provision of the Act has a sanctity attached to it, which .....

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