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Issues involved: Appeal by revenue against ITAT order on time limit for notices u/s 143(2)/142(1) and applicability of section 153(2) u/s 148 for reassessment.
Summary: The appeal was filed by the revenue against the order of the Income-tax Appellate Tribunal, Amritsar Bench, Amritsar regarding the time limit for notices issued under section 143(2)/142(1) and the applicability of section 153(2) in the case of reassessment under section 148 of the Income-tax Act, 1961 for the assessment year 1992-93. The Assessing Officer completed the assessment under section 143(3) of the Act on 25-1-1995 at Nil income. Subsequently, a notice under section 148 was issued on 18-5-2001 for alleged income escapement, to which the assessee responded by filing a return on 19-6-2001. Another notice under section 143(2) was issued on 17-3-2003, and the assessment was finalized on 28-3-2003 with a total income of Rs. 79,723 under section 143(3) read with section 147 of the Act. The assessee contended that the notice issued on 17-3-2003 under section 143(2) was beyond the time limit as per the Proviso to section 143(2)(ii) of the Act, which states that the notice cannot be served after 12 months from the end of the month in which the return was filed. However, the CIT(A) rejected this argument, stating that the notice under section 147 was issued within the time limit, and the notice under section 143(2) was for the purpose of making the assessee aware of the assessment process, not bound by the limitation under section 143(2) but by section 147 read with section 153 of the Act. The revenue's counsel argued that the limitation under Proviso to section 143(2) was not applicable once the assessment was reopened under section 147, citing an amendment in the Finance Act, 2006. The Tribunal's decision, based on different judicial opinions, was deemed unsustainable. The assessee's counsel acknowledged the inapplicability of the Proviso to section 143(2) post-amendment but emphasized the necessity for the notice to be within the limitation prescribed under section 147 of the Act. The Court held in favor of the revenue, stating that the Proviso to section 143(2) could not be invoked for reassessment under section 148 due to the amendment by the Finance Act, 2006. As the Tribunal did not address this specific issue, no opinion was expressed on it. Since other issues raised in the appeal were not considered, the case was remanded to the Tribunal for a fresh decision in accordance with the law.
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