2023 (5) TMI 587 - SC - Income Tax

Miscellaneous Application preferred by the Revenue - Reopening of assessment after assessments passed under 153A and 153C dismissed - Hon ble Court may clarify that the waiver of limitation as stipulated in section 150(2) is to be read in respect of the date of issue of notice for reassessment under section 148 (i.e.) if as on the date the assessment under section 153A or section 153C was passed, a notice under section 148 could have been issued as per the law then in force, then fresh proceedings for reassessment of such income not arising from the incriminating material found in search can now be initiated pursuant to the findings of this Hon ble Court in the present appeals/application - even though the appeals of the Revenue are dismissed in respect of assessments passed under 153A and 153C the assessing officers would be entitled to reassess such income in terms of Section 147/148 read with section 150. HELD THAT - As the prayers sought can be said to be in the form of review which requires detail consideration at length looking into the importance of the matter. Therefore, the present application in the form of clarification is not entertained and we relegate the Revenue to file an appropriate review application for the relief sought in the present application and as and when such review application is filed the same can be heard in the open court. The present application is not entertained and we relegate the Revenue to file an appropriate review application seeking the reliefs which are sought in the present application and as and when such review application is filed the same be heard and decided and disposed of in the open court. We relegate the Revenue to file an appropriate review application.

Summary

Issues involved:
The issues involved in the judgment include a Miscellaneous Application preferred by the Revenue seeking clarification on the waiver of limitation under section 150(2) in relation to reassessment proceedings under sections 148, 153A, and 153C of the Act.

Clarification on Waiver of Limitation (Section 150(2)):
The Revenue sought clarification on the waiver of limitation under section 150(2) concerning the initiation of fresh proceedings for reassessment of income not arising from incriminating material found in a search. The Court observed that the prayers sought by the Revenue can be considered as a review, which necessitates detailed consideration. The Court declined to entertain the present application in the form of clarification and directed the Revenue to file an appropriate review application for the relief sought. The Court emphasized the importance of the matter and the need for a thorough review process.

Decision and Disposal of the Application:
The Court, without delving further into the merits of the application, reiterated that the present application seeking clarification was not entertained. The Revenue was instructed to file a review application for the sought reliefs, which would be heard and decided in open court. The Court emphasized that the review application should be decided in accordance with the law and on its own merits. Consequently, the present application was disposed of, with the directive for the Revenue to pursue the appropriate review process for their requests.