2012 (10) TMI 1027 - AT - Income Tax

Summary

Issues Involved:
The judgment involves appeals from two different orders of CIT(A), Jalandhar, for the assessment years 2001-02 & 2002-03.

ITA No.522(Asr)/2011 - Assessment Year 2001-02:
The assessee challenged the reassessment order on grounds including incorrect jurisdiction assumption and levy of interest u/s 234. The AO issued notice u/s 148 more than five years after the end of the assessment year. The reasons recorded for the notice incorrectly stated that the assessee had not filed a return, which was factually incorrect. The income alleged to have escaped assessment was below the limit specified in section 149(1)(b). The Tribunal found in favor of the assessee, citing legal precedents and quashed the reassessment proceedings.

ITA No.523(Asr)/2011 - Assessment Year 2001-02:
Similar to the previous appeal, the assessee contested the reassessment order on various grounds. The AO issued the notice u/s 148 based on incorrect reasons and without proper jurisdiction. The Tribunal found that the income alleged to have escaped assessment was below the threshold specified in section 149(1)(b). The reassessment proceedings were quashed in favor of the assessee.

Conclusion:
Both appeals were allowed in favor of the assessee, as the Tribunal found that the reassessment notices were issued based on incorrect reasons and fell outside the jurisdictional limits specified in the relevant section. The appeals were decided in a consolidated order, and the reassessment proceedings were quashed.