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TMI Blog2012 (6) TMI 259X X X X Extracts X X X X X X X X Extracts X X X X ..... e direction of any authority or Court. appeal of the Revenue stands dismissed. - IT Appeal No. 1288 (Mds.) of 2010 - - - Dated:- 8-4-2011 - Hari Om Maratha, Abraham P. George, JJ. K.E.B. Rengarajan for the Appellant. T. Banusekhar for the Respondent. ORDER Hari Om Maratha, Judicial Member This appeal of the Revenue, for assessment year 1999-2000, is directed against the order of the ld. CIT(A)-I, Chennai, dated 5.4.2010. 2. Briefly stated, the facts of the case and the sequence of events leading to this appeal are that a search u/s 132 of the Act was conducted in the premises of the assessee-company on 3.11.2000. As a sequel to the search, block assessment order u/s 158BC r.w.s 143(3) was made on 29.11.2000. The block period involved is from 1.4.1990 to 3.11.2000. On appeal, the ld. CIT(A), vide his order dated 6.3.2007, deleted the entire additions made in the block assessment order, but he choose to direct the Assessing Officer u/s 150 of the Act to issue notice u/s 148 r.w.s 147 of the Act for assessment year 1999- 2000 (falling in the block), in relation to certain alleged bogus advances. In compliance, the Assessing Officer issued notice u/s 148 on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notice issued u/s 148, the assessee also filed Writ Petition and the Hon'ble High Court vide its order dated 20.2.2008 granted interim stay of four weeks. During this time, the Tribunal had disposed of the assessee's appeal against the direction of the ld. CIT(A) given to issue notice. But the second notice issued u/s 148 on 8.1.2008 had been issued as per the liberty given by the Hon'ble High Court to issue a fresh notice after hearing the reasons for filing the Writ Petition. This Writ Petition was, however, withdrawn on 30.12.2008. Under these circumstances, the Assessing Officer, after taking abundant precaution, completed protective assessment by giving the following reasoning: ( i ) The re-assessment was done to save the period of limitation; ( ii ) Notice u/s 148 was issued as permitted by the Hon'ble High Court in the writ Petition No.21809 of 2007; ( iii ) It appears that the Tribunal's order had not taken cognizance of the fact that the matter of the issue of notice u/s 148 stood concluded by the Hon'ble High Court's order. ( iv ) The Tribunal's order has not attained finality as the Department has filed appeal before the Hon'ble High Court u/s 260A of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome final and the Hon'ble High Court vide its order passed in W.P.No.21809 of 2007 and M.P.No.1 of 2007 has granted liberty to the Department to issue fresh notice if they wanted to do so and hence, the issue regarding validity of notice u/s 148 pending with the subordinate judicial authorities was merged with the order of the Hon'ble High Court and as such fresh notice u/s 148 dated 8.1.2008 issued by the Assessing Officer is in accordance with law. On the other hand, the ld. AR has submitted that the ld. CIT(A) has correctly quashed the notice in question as the notice was clearly time barred as per the provisions of the Act. 5. After cogitating the material available on record, we are convinced that the findings of the ld. CIT(A) are correct and no interference is called for. The reasons for our above epilogue are manifold. It is an undisputed and admitted fact that if the directions given by the ld. CIT(A) u/s 150 of the Act have been quashed by the Tribunal and they no longer survive. Under section 150, a notice u/s 148 may be issued at any time for the purpose of making an assessment or re-assessment or re-computation in consequence of or to give effect to any finding or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... b ); ( b ) if four years, but not more than six years, have elapsed from the end of the relevant assessment year unless the income chargeable to tax which has escaped assessment amounts to or is likely to amount to one lakh rupees or more for that year.] Explanation.- In determining income chargeable to tax which has escaped assessment for the purposes of this sub-section, the provisions of Explanation 2 of section 147 shall apply as they apply for the purposes of that section.] (2) The provisions of sub-section (1) as to the issue of notice shall be subject to the provisions of section 151. (3) If the person on whom a notice under section 148 is to be served is a person treated as the agent of a non-resident under section 163 and the assessment, reassessment or recomputation to be made in pursuance of the notice is to be made on him as the agent of such non-resident, the notice shall not be issued after the expiry of a period of two years from the end of the relevant assessment year." 7. From the above, it is clear that time limit for issuance of notice u/s 148 has been provided in the given circumstances of a case. It is an open secret that the direction given by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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