TMI Blog2001 (11) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... oticed. On December 24, 1999, the petitioner filed its return of income for the assessment year 1999-2000. It declared an income of Rs.1,45,26,10,930. On May 23, 2000, the respondent informed the petitioner that after adjusting the tax already paid, it was liable to pay an amount of Rs.1,46,88,952. A copy of this "intimation" is at annexure P-2 with the writ petition. The petitioner filed an appeal claiming that the amount of Rs.1,70,20,247 charged by way of interest under section 234C was not leviable. Vide order dated November 23, 2000, the Commissioner of Income-tax (Appeals) accepted the petitioner's claim. On February 25, 2001, the Assessing officer issued notice under section 154/ 155 for amendment of the intimation under section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the expiry of twelve months from the end of the month in which the first return was submitted." Various other grounds have also been raised. It has been further alleged that if the respondent is to "make an assessment under section 143(3) after issuing notice under section 143(2), the period for making assessment available will be up to March 19, 2002, whereas if he is allowed to make an assessment under section 147/148, the period of limitation will be up to March 31, 2003. Such a discriminatory device cannot legitimately be permitted to be adopted by the respondent so as to extend the period of limitation." On these premises, the petitioner prays that the notice dated March 29, 2001, a copy of which has been produced as annexure P-3, b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Tax-Officer-cum Regional Transport Officer v. Durg Transport Co. P. Ltd. [1972] 85 ITR 156 "the term 'escaped assessment' includes both non-assessment as well as under-assessment. When a person is not assessed to tax though he is liable to be taxed the tax escapes assessment." However, before proceeding to consider this matter in its strictly technical sense, the factual position deserves to be noticed. It is the admitted position that after the filing of the return, an intimation was sent to the petitioner under section 143(1) of the Income-tax Act on May 23, 2000. A copy of this document is at annexure P-2. The petitioner had filed an appeal to challenge the levy of interest under section 234C. Still further, even notice under sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n that, on issuance of such intimation, the assessment proceedings can be reopened only in terms of section 147 and the authority is not entitled to proceed under sub-section (2) of section 143." This decision, in our view, does not support the petitioner's contention in any way whatsoever. In Pradeep Kumar's case [1998] 229 ITR 46 (All), it was categorically observed at page 47 that "the only requirement of section 147 is that the Assessing Officer must have good reason to believe that some income had escaped assessment. Once this belief is well-founded, recourse to reassessment proceedings cannot be said to be illegal. So long as the ingredients of section 147 are fulfilled, the Assessing Officer is free to initiate reassessment procee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as assessment proceedings pending on the basis of the return already filed are not terminated." There is no quarrel with this proposition. However, in the present case, as noticed above, it is the petitioner's own case as pleaded in its representation to the respondent that the assessment for the year 1999-2000 "was completed by your honour vide intimation under section 143(1) dated May 23, 2000." Still further, even an appeal was filed against this order. In this situation, it cannot be said that the assessment had not been made. Factually, even interest under section 234C was levied. The petitioner's liability to pay tax and interest was determined. A demand was raised and an appeal was filed. In this situation, it cannot be said that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is section after the expiry of four years from the end of the relevant assessment year" in a case "where an assessment under sub-section (3) of section 143 ... has been made for the relevant assessment year." This provision is clearly indicative of the legislative intent. It shows that the provision of section 147 can be invoked not only after the order has been passed under section 143(3) but even otherwise. A faint attempt was made to contend that by proceeding under section 147/148, the period of limitation would be extended. We are unable to accept this contention. Firstly, it is the petitioner's own case that the assessment under section 143(3) could be made up to March 19, 2002. In the present case, the impugned notice was issued ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
