2014 (10) TMI 5 - HC - Income Tax

Revised Return u/s 139(5) - period of limitation - Intimation u/s 143(1) - belated and invalid or not Whether the Tribunal was justified in law in holding that issue of the intimation u/s 143(1) for the AY 1999-2000 on August 08, 2000 amounted to completion of assessment within the meaning of section 139(5) disabling the appellant from filing a revised return and that the revised return filed on March 31, 2001 was belated and invalid Held that - The provision contemplates an assessment without prejudice to the provisions of sub-section (2) of the section where under the AO shall, if he considers it necessary, serve on the assessee a notice requiring him, on a date to be specified therein, to attend his office or to produce or cause to be produced there, any evidence on which the assessee may rely in support of the return and after taking into account all relevant materials the Assessing Officer shall by an order in writing make an assessment - Thus the provision for assessment to be made for the purpose of issuance of an intimation u/s 143(1) of the Act reserving the authority of the AO to resort to the provisions under sub-section (2) thereof, cannot be said to be completion of assessment and, therefore, limit the time otherwise available to file revised return relying upon Assistant Commissioner of Income-Tax Versus Rajesh Jhaveri Stock Brokers P. Limited 2007 (5) TMI 197 - SUPREME Court Decided in favour of assessee.

Summary

Issues:
Interpretation of provisions of Sections 139 and 143 of the Income Tax Act, 1961 - Completion of assessment on issuance of intimation under Section 143(1) - Validity of revised return filed after intimation - Applicability of precedents in determining completion of assessment.

Analysis:
The appeal before the Calcutta High Court involved the question of law regarding the completion of assessment under Sections 139 and 143 of the Income Tax Act, 1961. The appellant contended that the intimation under Section 143(1) issued on August 8, 2000, did not amount to completion of assessment, allowing the filing of a revised return on March 31, 2001, within the time provided under Section 139(5). The appellant relied on the decision in the case of Assistant Commissioner of Income Tax versus Rajesh Jhaveri Stock Brokers (P) Ltd. to support their argument that assessment was not completed upon issuance of intimation under Section 143(1).

The respondent, representing the Revenue, argued that the intimation issued on August 8, 2000, signified the completion of assessment as the original return was accepted, and no further particulars were sought under Section 143(2). The respondent emphasized that the revised return filed on March 31, 2001, was not accepted due to the completed assessment. The respondent referred to precedents to distinguish the appellant's reliance on Rajesh Jhaveri case, highlighting the context of reassessment in the Supreme Court's interpretation.

The High Court analyzed the Tribunal's decision and the provisions of Section 143(1) of the Income Tax Act. The Court referred to the Rajesh Jhaveri case and the distinction between intimation and assessment under Section 143(1). It was noted that the provision allowed for assessment under Section 143(1) without prejudice to the Assessing Officer's authority to resort to Section 143(2) for further assessment. The Court concluded that the intimation under Section 143(1) did not equate to completion of assessment, thereby allowing the filing of a revised return within the prescribed time.

The Court upheld the appellant's argument, finding in favor of the assessee and against the Revenue. The appeal was allowed, emphasizing that the completion of assessment was not triggered solely by the issuance of intimation under Section 143(1). The judgment provided a detailed analysis of the legal provisions and precedents to support the decision, ensuring clarity on the interpretation of the Income Tax Act in relation to assessment completion and revised return filing.