TMI Blog2013 (3) TMI 728X X X X Extracts X X X X X X X X Extracts X X X X ..... ce u/s. 143(2) of the Act for the purpose of completing assessment u/s. 143(3) of the Act is valid. Besides this legal issue, the assessee is also assailing the decision rendered by the Ld. CIT(A) on merits of various additions. 3. We prefer to dispose of the legal issue first. The facts relating thereto are stated in brief. The assessee filed his return of income for the year under consideration u/s. 139(1) of the Act on 30-10-2002. The same was processed u/s. 143(1) of the Act. Thereafter the assessee filed a revised return of income u/s. 139(5) of the Act on 21-11-2003 and the said return of income was also processed u/s. 143(1) of the Act on 31-03-2004. Since the Assessing Officer noticed escapement of income, he issued notice u/s. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act cannot be completed within the time available for issuing notice u/s. 143(2) of the Act and for completion of assessment u/s. 143(3) of the Act. For the sake of convenience, we extract below the relevant observations made by the Hon ble Jurisdictional High Court in the above said case:- 4. This leaves us with the question whether the Tribunal was justified in cancelling the re-assessment completed u/s. 147 for the assessment year 2003-04 which was admittedly within the period provided for issuing notice u/s. 143(2) and for completing the regular assessment u/s. 143(3) of the Act. Senior Counsel appearing for the Revenue contended that once escapement of income is noticed by the department after issuing intimation u/s. 143(1), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee could be brought to tax in a regular assessment which to be completed u/s. 143(3) by issuing notice u/s. 143(2). So far as the two decisions of the Madras High Court are concerned, the finding of the High Court is consistent in as much as according to them, if escaped income comes to the notice of the Assessing Officer after issuing intimation u/s. 143(1), the course open to the officer is to issue notice u/s. 143(2) and to make regular assessment u/s. 143(3) bringing to tax any escaped income in respect of which information is available to the Assessing Officer. So much so, within the time available under the Act for issuing notice u/s. 143(3) the Assessing Officer should not proceed to make an income escaping assessment u/s. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment year 2003-04, we have no escape from deciding it. At the same time our view is that consistent decisions of different High Courts not contested by the department in appeal before the Supreme Court should not be disturbed by us, even if we don t agree with the view taken by other High Courts. Going by the consistent view expressed by the Madras High Court in the two decisions and that of the Delhi High Court in the decision above referred, we have to only dismiss the appeal preferred by the Revenue for the year 2003-04 for the reason that when notice was issued for re-assessment u/s. 147 of the Act, time for issuing notice u/s. 143(2) for regular assessment was not over and the Assessing Officer could have brought to tax even incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be made for the first time as an assessment, no matter whether assessee has filed return or not. However, the sine qua non for initiating proceedings u/s. 147 is information available with the officer that any income chargeable to tax has escaped assessment within the meaning of that term explained in the statute. It is a settled position that the Assessing Officer has to record his reasons for initiating proceedings for assessment u/s. 147 and notice has to be issued u/s. 148 and if assessee calls for justification for initiation of proceedings, the Assessing Officer is bound to communicate reasons for initiating the income escaping assessment for any year against the assessee. Therefore, an income escaping assessment need not be based on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment u/s. 147 beyond four years after completion of assessment u/s. 143(3) only if assessee failed to disclose fully and truly all material facts necessary for assessment. Therefore, in our view, an assessment u/s. 147 is permissible subject to the period of limitation stated therein, irrespective of whether the return was filed or intimation sent to the assessee or regular assessment u/s. 143(3) after issuing notice u/s. 143(2) of the Act was made or not. In other words, even within the time available for issuing notice u/s. 143(2) for making regular assessment if the Assessing Officer is of the view that materials available with him or discovered by him are such as to justify income escaping assessment u/s. 147, he is free to record the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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