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TMI Blog1998 (3) TMI 181X X X X Extracts X X X X X X X X Extracts X X X X ..... 987 w.e.f. 1-4-1989." 2. The Ld. D.R. has argued that the order of the CIT(A) has erred in holding that the Assessing Officer was not entitled to commence proceedings under section 147(a) or 147(b) and thus the re-assessment proceedings initiated by virtue of notice under section 148 are not valid. He has also argued that notice issued under section 148 read with section 147 is procedural in nature. The amendment in these sections has been made by the Direct Tax Laws (Amendment) Act, 1987 w.e.f.1-4-1989and it was therefore urged that the action of the AO in applying the amended provisions of the Act is a valid action and needs to be sustained. 3. On the other hand, Shri Ajay Vohra, the learned Authorised Representative has heavily placed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en placed on the judgment of theHon'ble Apex Courtin the case of Govinddass v. ITO [1976] 103 ITR 123. Reliance has also been placed on the judgment of the CED v. M.A. Merchant [l989] 177 ITR 491/44 Taxman 274 (SC) and Srinivasa Metal Works v. ITO [1987] 20 ITD 768 (Hyd.) and accordingly it was urged that reassessment has to be adjudged vis-a-vis old laws. On facts, it was argued that this case was a mere change of opinion and the Assessing Officer has merely enlarged the disallowance in the re-assessment proceedings. Reliance has also been placed on various judgments in the case of Kaira District Co-opetative Milk Producers Union Ltd. v. Asstt, CIT [1996] 220 ITR 194/87 Taxman 144 (Guj.), Garden Silk Mills Ltd. v. Dy. CIT (No.2) [1996] 222 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owed to the assessee. The case of the revenue is for assessment year 1987-88 which falls within a period prior to date of amendment on1-4-1989in the Income-tax Act, 1961. The original assessment in this case was completed by the Assessing Officer on17-11-1989and the copy of assessment order had been placed at pages 33 to 40 of the paper book. The issue raised by the Ld. counsel for the assessee that final assessment should not be disturbed unless it is expressly provided to have retrospective operation of a statute by placing reliance on the judgment of the Hon'ble Apex Court in Govinddass case relate only to matters which take away or impair an existing right or create a new obligation or to impose new liability otherwise than as regards t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orm the position is summed as follows: - "The cases where assessments have been completed prior to31-3-89and limitation under section 153 of the I.T. Act, 1961 has also expired, then the revenue does not have a right of reopening of the completed assessment under the old provisions of Act, i.e. prior to amendments made by Finance Act, 1987 w.e.f.1-4-1989. It is because the right of revenue for reopening an assessment gets vested in an assessee and such matters are considered as dead or closed matters for the purpose of assessment. It is thus where the legislation does not make an amendment by specifically enacting its applicability with retrospective date, then any amendment made in the procedural sections cannot penetrate into the limited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the amendment into effect, i.e., up to 1-4-1989. As all such cases where the time limitation has not expired up to1-4-1989, the amended provisions will give an exhaustive right to reopen the cases with retrospective effect as per amended provisions of the Act. We find that in the case of respondent-assessee not only that the limitation period had not expired but the original assessment was also not completed prior to coming of the amendment in force w.e.f.1-4-1989. Accordingly, in such a situation we hold that the Assessing Officer was having legal jurisdiction in initiating the procedure under section 147 of the Act by issue of notice under section 148 on20-4-1990under the amended provisions of section 147 introduced by the Direct Tax La ..... X X X X Extracts X X X X X X X X Extracts X X X X
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