TMI Blog2001 (3) TMI 56X X X X Extracts X X X X X X X X Extracts X X X X ..... r section 143(1)(a) of the Act had been sent to it on October 15, 1999. In the return it had shown the cost of the construction put up by it as Rs. 92.12 lakhs. On the very day on which the intimation under section 143(1)(a) of the Act was sent, namely, on October 15, 1999, the Assessing Officer had noticed the discrepancy in the cost of the construction as estimated by the valuer and as noted in the account books of the assessee and had sought a valuation report from the Departmental valuer. The report which was received after a period of several months, indicated the cost of construction as Rs. 168 lakhs. After that report was received the impugned notice was sent. Learned counsel for the assessee submitted that the notice so issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 143(1)(a) of the Act is an assessment. Counsel in this context referred to sections 140, 153, 199 and 219 as also to section 143 itself and submitted that section 143 is seen to be found in the Chapter dealing with the procedure for assessment and that Chapter itself is captioned as "assessment". While section 153 refers to the orders of assessment made, inter alia, under section 143, section 199 refers to credit for tax for being deducted at source in the assessment made under this Act for the assessment year for which the income is assessable. Section 140A of the Act was referred to, to point out that self-assessment is accompanied by liability to pay the tax as so self-assessed and it is that tax paid on such self-assessment that is ref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owledgment under section 143(1) is done mostly by the managerial staff who are not conferred with the power to make any assessment. For the purpose of this case, it is not very material as to whether the intimation sent under section 143(1)(a) is or is not an assessment. Having regard to the scope of section 147, a notice under section 148 can be issued, not only for the purposes of escaped income, but also for the purposes of reassessment of such income and even if an assessment-has been made under section 143(3) that would not have made a difference so far as the power given to the Revenue to assess escaped income is concerned. It may, however, be noticed here that section 143(4) refers to regular assessment which would seem to indicate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment as the very purpose of giving notice under section 143(2) is only to ensure that the assessee has not understated the income or has not computed excessive loss and has not underpaid the tax in any manner. The failure to issue a notice under section 143(2) is, therefore, capable of being regarded as indicating the acceptance by the assessing authority of the correctness of what has been submitted by the assessee in his return for which the intimation had been given. The term "assessment" can, therefore, be regarded as capable of being applied to an intimation under section 143(1), especially where the regular assessment had not been made under section 143(3). In this case the valuation report was called for by the Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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