2011 (4) TMI 1459 - AT - Income Tax

Summary

Issues involved:
The legal issues in this judgment involve the jurisdictional aspect of reassessment u/s 147 r.w.s. 148 of the Income Tax Act, 1961.

Jurisdictional Issue:
The first legal issue in this appeal concerns the order of CIT(A) not adjudicating the jurisdictional issue of reassessment u/s. 147 r.w.s. 148 of the Act. The appellant contended that the reasons recorded for initiating proceedings under section 147 were vague and not supported by evidence. The Tribunal observed that the proceedings under section 147 can be disputed even in the second round of appeal, citing the decision of Hon'ble Gujarat High Court in P. V. Doshi Vs. CIT. The Tribunal held that the CIT(A) should have decided the jurisdictional issue first and remanded the legal aspect for fresh adjudication.

Background and Decision:
The original assessment was completed under section 144/147 for the assessment year 1989-90, with subsequent reassessment under section 147/143(3)/254 of the Act. The Assessing Officer made additions and the appellant disputed these additions and the initiation of assessment proceedings under section 147 r.w.s. 148 before CIT(A). The Tribunal emphasized that the objection regarding lack of jurisdiction should be decided first, as per established legal principles. Therefore, the Tribunal set aside the legal aspect to the file of the CIT(A) for fresh adjudication, while also allowing the appeal for statistical purposes.