2013 (12) TMI 1260 - HC - Income Tax

Validity of assessment u/s 147 - Held that - Notice has been issued within the stipulated time and cannot be treated as barred by time - The AO has also furnished reasons recorded by the assessing officer for reopening the case - The appeal has no merits - Decided against assessee.

Summary

Issues:
Challenging the findings of the order passed by the Commissioner of Income Tax, Belgaum, in ITA Nos.42 & 43/BGM/2005-06 dated 18.1.2006 for the assessment year 2000-2001.

Detailed Analysis:

1. Background and Appeal Process:
The appellant, a civil contractor, challenged the order passed by the Commissioner of Income Tax (Appeals) and filed appeals before the Income Tax Appellate Tribunal. The Tribunal dismissed the appeals, leading to the filing of the present appeal against the concurrent findings of the respondents.

2. Timeline and Notice Issuance:
The appellant filed the return for the assessment year 2000-2001 on 28.3.2002 under Section 139(5) of the Income Tax Act. The appellant argued that the notice under Section 143(2)(ii) should have been issued by 31.3.2003, but it was not. A notice for reassessment under Section 148 was issued on 6.2.2004, and the order of assessment was passed on 24.3.2005. The appellant contended that the reassessment notice was time-barred and lacked proper reasons.

3. Contentions and Arguments:
The appellant's counsel argued that the notice for reassessment was invalid and time-barred, and the Assessing Officer did not provide adequate reasons for reopening the case. On the other hand, the department's counsel contended that the notice was issued within the stipulated time and proper reasons were recorded for reopening the case.

4. Court's Decision:
After considering the arguments and reviewing the reasons recorded by the Assessing Officer, the Court found that no substantial question of law arose in the appeal. The Court held that the notice for reopening the case was issued within the prescribed time limit and that detailed reasons were provided by the Assessing Officer. Consequently, the appeal was dismissed as no substantial question of law required consideration.

5. Final Disposition:
The Court dismissed the appeal, stating that no substantial question of law arose for consideration. As a result, the application for dispensation was also disposed of accordingly.

In conclusion, the High Court of Karnataka dismissed the appeal challenging the order of assessment for the assessment year 2000-2001, as it found no substantial question of law to be considered based on the validity of the reassessment notice and the reasons provided for reopening the case.