1998 (11) TMI 120 - HC - Income Tax

Summary

Issues involved:
The petitioner sought to quash the intimation u/s 143(1)(a) of the Income-tax Act, 1961, and prevent any orders based on it.

Judgment Details:

Issue 1: Jurisdiction of Assessing Officer
The petitioner filed an income-tax return for the assessment year 1989-90, showing a loss. Subsequently, a revised return was filed. Despite a notice u/s 145(2) and ongoing assessment proceedings u/s 143(3), an intimation u/s 143(1)(a) was issued. The petitioner contended that once a notice u/s 143(2) is issued, the Assessing Officer cannot issue an intimation u/s 143(1)(a). The court agreed with this argument, citing relevant case laws and the provisions of the Act.

Issue 2: Legal Interpretation
The court referred to case laws such as Modern Fibotex India Ltd. v. Deputy CIT and Gujarat Poly-AVX Electronics Ltd. v. Deputy CIT, emphasizing that assessment should be completed u/s 143(3) after a notice u/s 143(2), not u/s 143(1). The petitioner's counsel argued that the intimation u/s 143(1)(a) issued after the notice u/s 143(2) should be quashed, which was accepted by the court.

Final Decision:
The court quashed the intimation u/s 143(1)(a) issued after the notice u/s 143(2) and allowed the completed assessment u/s 143(3) to be communicated to the petitioner for further action. The petition was disposed of accordingly, with directions for communication of the assessment order to the assessee.