TMI Blog2007 (10) TMI 657X X X X Extracts X X X X X X X X Extracts X X X X ..... Nov., 1997 wherein the income was admitted at ₹ 3.58 crores under normal computation. The original assessment was completed under s. 143(3) on 27th March, 2000 and the income under normal computation was assessed at ₹ 8.98 crores. Later on, notice under s. 148 was issued on 27th Jan., 2003. The main reasons advanced for reopening of the assessment were that the assessee has wrongly claimed interest amounting to ₹ 378.06 lakhs on capital work in progress and the assessee had further claimed expenditure on repairs on let out properties. The learned counsel for the assessee invited our attention to p. 19 of the paper book, which is copies of notes forming part of the return wherein by item No. 3, a clear note was given disclo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 005) 275 ITR 451(Mad) and in the case of Apollo Hospitals Enterprises Ltd. vs. Asstt. CIT (2006) 206 CTR (Mad) 426: (2006) 287 ITR 25 (Mad). 3. The learned counsel for the assessee further referred to p. 1 of the paper book which is copy of the sanction letter written by the AO to the CIT, seeking permission to reopen the case. He invited our attention to Col. 8 of the proforma wherein it was mentioned that the assessment was proposed to be done for the first time. In this case, this is a wrong information because assessment was already framed and completed under s. 143(3) of the Act vide assessment order dt. 27th March, 2000. He vehemently argued that the CIT would not have given permission to reopen the case had he known the correct fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no action shall be taken under this section after the expiry of four years from the end of the relevant assessment year, unless any income chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee to make a return under s. 139 or in response to a notice issued under sub-s. (1) of s. 142 or s. 148 or to disclose fully and truly all material facts necessary for his assessment, for that assessment year. The above proviso is very clear that where an assessment was originally completed under s. 143(3) of the Act, the same should not be normally reopened. However, the same can be reopened only if the assessee has failed to file the return of income or there is a failure on the par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion, namely, the change in the method of accounting of overdue interest on cash or actual receipt basis, when the assessee was following the mercantile system of accounting. The reassessment proceedings were not valid. Again, the Hon'ble Madras High Court in the case of Apollo Hospitals Enterprises Ltd. (supra) reiterated the same position. Therefore, we are of the view that in this case, notice issued for reopening of the assessment after the expiry of four years of the completion of the original assessment is beyond time-limit provided in the proviso to s. 147 of the IT Act and, therefore, we hold that the reassessment is illegal and the same is quashed. 6. In view of our above decision to quash the reassessment, there is no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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