TMI Blog2023 (5) TMI 885X X X X Extracts X X X X X X X X Extracts X X X X ..... no notice had been issued u/s 148. The legislative history of Section 245A of the Act clearly indicates that the proceedings for assessment, re-assessment and re-computation under section 148 of the Act, prior to issuance of notice under Section 148 of the Act, were excluded from the scope of the definition of the term case . Such proceedings have been included by virtue of the Finance Act, 2015 albeit on certain conditions being satisfied as noted hereinbefore. In Commissioner of Income Tax v. Income Tax Settlement Commission decided on 20.11.2012 [ 2012 (11) TMI 766 - DELHI HIGH COURT] a Coordinate Bench of this Court had explained the qualitative difference between assessment proceedings pursuant to returns filed u/s 139 and pursuant to a notice u/s 148 - In respect of assessment proceedings u/s 143 AO has the jurisdiction to examine the returns and pass an assessment order within a period of two years from the end of the relevant assessment years. However, in cases where income has escaped the assessment, the same can be reopened only upto a specified period and subject to certain conditions being satisfied. However, the possibility that proceedings for assessment, rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... make an application for settlement at any stage of a case relating to him . Thus, the question that falls for consideration of this Court is whether there was a case (or cases) relating to the petitioners, in respect of the Assessment Years 2012-13 and 2013-14. 4. Briefly stated, the controversy arises in the following context: 4.1 The petitioners had filed their respective applications under Section 245C (1) of the Act on 15.12.2016 in respect of the Assessment Years 2012-13 to 2016-17. The Commission passed an order dated 22.12.2016 under Section 245D(1) of the Act, allowing the applications to proceed in respect of the Assessment Years 2012-13 to 2016-17. The Commission also called for reports under Section 245D(2B) from the concerned Principal Commissioner of Income Tax (hereafter Pr. CIT ) on the question of (i) the validity of the applications for the relevant years; (ii) the correctness and adequacy of the additional tax paid by the petitioners; and (iii) the compliance as required under Section 245C(4) of the Act. 4.2 The concerned Pr. CIT furnished reports dated 23.01.2017 and 24.01.2017, which were received by the Commission on 25.01.2017. The P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and in force at the material time is set out below: 245A. In this Chapter, unless the context otherwise requires, (a) xxx xxx xxx (b) case means any proceeding for assessment under this Act, of any person in respect of any assessment year or assessment years which may be pending before an Assessing Officer on the date on which an application under sub-section (1) of section 245C is made. Explanation. For the purposes of this clause (i) a proceeding for assessment or reassessment or re-computation under section 147 shall be deemed to have commenced (a) from the date on which a notice under section 148 is issued for any assessment year; (b) from the date of issuance of the notice referred to in sub-clause (a), for any other assessment year or assessment years for which a notice under section 148 has not been issued, but such notice could have been issued on such date, if the return of income for the other assessment year or assessment years has been furnished under section 139 or in response to a notice under section 142; (ii) *** (iii) a proceeding for making fresh assessment in pursuance of an order under section 254 or secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cts of the present case, no notice under Section 148 of the Act was issued to the petitioners at the material time in respect of any of the assessment years; therefore, the time for making the application as well as on the date of passing the impugned order dated 06.02.2017, there were no proceedings pending for re-opening any assessment for any of the assessment years for which the applications were made, that is, for Assessment Years 2012-13 to 2016-17. However, the applications in respect of Assessment Years 2014-15, 2015-16, and 2016-17 were maintainable because in terms of Explanation (iv) the proceedings for the said Assessment Years were not concluded as on 15.12.2016, that is, the date on which the petitioners had filed their respective applications. 10. In this view, we find no infirmity with the decision of the Commission in holding that the applications filed by the petitioners under Section 245C (1) of the Act for the Assessment Years 2012-13 and 2013-14 were invalid as there was no case pending in relation to the petitioners for the said assessment years on the date of the respective applications filed by the petitioners. 11. Ms. Aggarwal, learned senior counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich has not been admitted, such appeal or revision shall not be deemed to be a proceeding pending within the meaning of this clause; 13. Clause (b) of Section 245A of the Act was substituted by the Finance Act, 2007. The said clause as substituted, reads as under:- 245A. In this Chapter, unless the context otherwise requires.- (b) case means any proceeding for assessment under this Act, of any person in respect of any assessment year or assessment years which may be pending before an Assessing Officer on the date on which an application under sub-section (1) of section 245C is made: Provided that- (i) a proceeding for assessment or reassessment or recomputation under section 147; (ii) a proceeding for assessment or reassessment for any of the assessment years referred to in clause (b) of section 153A in case of a person referred to in section 153A or section 153C; (iii) a proceeding for assessment or reassessment for the assessment year referred to in clause (b) of sub-section (1) of section 153B in case of a person referred to in section 153A or section 153C; (iv) a proceeding for making fresh assessment in pursuance of an order under sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on (i) to Clause (b) of Section 245A of the Act remained unaltered. 16. By virtue of the Finance Act, 2014, the proviso to Clause (b) of Section 245A of the Act was deleted, however, the Explanation continued to remain. Clause (b) of Section 245A of the Act, after the Finance Act, 2014 came into force, reads as under:- 245A. In this Chapter, unless the context otherwise requires- (b) case means any proceeding for assessment under this Act, of any person in respect of any assessment year or assessment years which may be pending before an Assessing Officer on the date on which an application under sub-section (1) of section 245C is made. [***] Explanation-For the purposes of this clause- (i) a proceeding for assessment or reassessment or recomputation under section 147 shall be deemed to have commenced from the date on which a notice under section 148 is issued; (ii) [***] (iii) a proceeding for making fresh assessment in pursuance of an order under section 254 or section 263 or section 264, setting aside or cancelling an assessment shall be deemed to have been commenced from the date on which such order, setting aside or cancelling an as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... specified period and subject to certain conditions being satisfied. However, the possibility that proceedings for assessment, reassessment or re-computation of income may be initiated under Section 147 of the Act, after an assessment has been framed or the period of framing assessment has lapsed, cannot be construed to mean that a case is pending under Clause (b) of Section 245A of the Act. In Commissioner of Income Tax v. Income Tax Settlement Commission (supra), this Court had explained the above in the following words. 9. The expression pending in this case, has to be viewed contextually. In plain terms, it would mean when some case, cause or controversy is actually pending consideration before the assessment officer. In the facts of this case, the assessee filed its returns for four successive years; no notice under Section 143 (3) was issued. The AO lost jurisdiction to deal with those matters on the expiry of 21 months' period reckoned from the date(s) when the returns were filed. In Calcutta Discount Company Limited vs. ITO, AIR 1961 SC 372, the Supreme Court had ruled that an assessment proceeding commences from the date when the assessee files its return. The t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
