TMI Blog2017 (9) TMI 809X X X X Extracts X X X X X X X X Extracts X X X X ..... Decided in favour of assessee. - I.T.A.No.252/Vizag/2013 - - - Dated:- 18-8-2017 - SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER For The Appellant : Shri G.V.N.Hari, AR For The Respondent : Shri D.J.P. Anand, DR ORDER D.S. Sunder Singh, Accountant Member This appeal is filed by the assessee against the order of the Commissioner of Income Tax (Appeals), [CIT (A)]-11, Mumbai holding concurrent jurisdiction of CIT (A), Visakhapatnam vide ITA No.CIT(A)-11/M/IT-649/2011-12 dated 26.02.2013 for the assessment year 2008-09. 2. The assesseee filed appeal with five grounds on merits along with appeal memo in Form No.36. Subsequently the assessee filed additional ground stating that the order passed u/s 143(3) on 29.12.2011 is barred by limitation. In this case, the assessee has not filed return of income, hence, the assessing officer issued notice u/s 142(1) on 29.01.2010 and the same was served on assessee on 15.02.2010. As per the notice issued u/s 142(1) the assessee has to file return of income before the due date mentioned in the notice, but the assessee choose not to file the return of income. The assessing officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is nothing but initiation of parallel income tax proceedings under two different sections for the same source of income for the same assessment year and the same is not permitted by law. As per the law laid down under Income Tax Act, the assessing officer is allowed to call for the return of income and other relevant information for completing the assessment u/s 142(1) of the Act. If the assessee files return of income, the scrutiny assessment proceedings would commence by issue of notice u/s 143(2) and in case of non furnishing the return of income, the assessing officer should resort to Best judgement assessment u/s 144 by issue of a show cause letter for making ex-parte assessment as per the information available with the assessing officer. Ld.AR further argued that when the assessment proceedings are already initiated by issue of notice u/s 142(1) and called for the return of income, no notice u/s 148 is required. Once the notice u/s 142(1) is issued, the assessment is required to be completed within the time limit allowed u/s 143(3) or 144. In this case, the assessment involved was of assessment year 2008-09 and the notice was issued on 29.01.2010. Therefore, the time limit fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment as per the procedure laid down u/s 143(2) / 144 of I.T. Act. The time limit for completion of assessment is within two years from the end of the relevant assessment year. In case, the assessee did not respond to the notice issued u/s 142(1) and the assessing officer is duty bound to make assessment u/s 144 by issue of show cause notice. For ready reference, we extract relevant provisions of section 142(1) and 144 of I.T. Act. Section 142(1) reads as under : Inquiry before assessment. 142. (1) For the purpose of making an assessment under this Act, the Assessing Officer may serve on any person who has made a return under section 115WD or section 139 or in whose case the time allowed under sub-section (1) of section 139 for furnishing the return has expired a notice requiring him, on a date to be therein specified,- (i) where such person has not made a return within the time allowed under sub-section (1) of section 139 or before the end of the relevant assessment year, to furnish a return of his income or the income of any other person in respect of which he is assessable under this Act, in the prescribed form and verified in the prescribed manner and setting forth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 144 on or before 31.03.2011. Since the assessment is already initiated, during pendency of assessment proceedings, there is no case for invoking the provisions of reassessment u/s 148 of I.T. Act and reopening of the assessment. 5.3 The procedure for reassessment is also enshrined in section 147, 148 and 143 of I.T. Act. Where the assessee is having taxable income but not filed the return of income, the assessing officer is empowered to issue notice u/s 148 after recording the reasons. Similarly, where the assessee has furnished return of income, but the assessing officer has a reason to believe that income chargeable to tax has escaped assessment, after recording the reasons, the assessing officer has to take action u/s 148 and issue notice u/s 148. In both the instances, notice u/s 148 is issued calling for the return of income from the assessee within a specified period. For ready reference, we extract the relevant provisions of I.T. Act. [Issue of notice where income has escaped assessment. 148. (1) Before making the assessment, reassessment or recomputation under section 147, the Assessing Officer shall serve on the assessee a notice requiring him to furnish within s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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