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TMI Blog2012 (8) TMI 479X X X X Extracts X X X X X X X X Extracts X X X X ..... with the delay of 15 months of the end of the relevant assessment year 2005-06 - when there is no express provision limiting issuance of notice u/s 142 (1) within the period of one year from the end of the relevant assessment year, no such limitation can be read into the provision - no substantial force in the argument of assessee that notices u/s 142 (1) cannot be issued when no return of income was filed Notice u/s. 148 - arguments of assessee about applicability of the provisions of S.148 are of no use as it is a separate proceedings and is not the case here that proceedings under S.144 read with S.142 (1) (i) are simultaneously initiated, while the other proceedings under S.148 are in force or vice versa - set aside the matter to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case are that based on the information received from the Sub-Registrar s Office, Erragadda to the effect that the assessee had sold property for an amount of Rs.69,08,000/- as per the document registered on 20.3.2005, since the assessee was not assessed to income-tax, the assessing officer issued a notice under S.142(1) of the Act dated 29.8.2007, requesting the assessee to file the return of income. As there was no response to the said notice, a further show cause letter was addressed to the assessee on 21.11.2007. Observing that the assessee has not filed any reply even to this show-cause letter, the assessing officer proceeded to complete the assessment under S.144 of the Act, bringing to tax the unexplained investment made in imm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pecial Bench of the Tribunal in the case of Motorola Inc (95 ITD 269)-Del., which is dated prior to the insertion of the proviso to S.142(1)(i) of the Act. 5. The Learned Departmental Representative for the Revenue, submitted that the legal issue raised by the assessee is covered by the recent decision of the Tribunal dated 18.5.2012, in ITA No.532/Hyd/2010 in the case of Dy. Director of IT(Intl. Taxn.), Hyderabad V/s. Smt. Kausari Begum, Hyderabad. Core argument of the learned counsel revolves around the interpretation of the provisions of the proviso to S.142(1)(i) of the Act, and the requirement of invoking the provisions of S.148 of the Act instead. The Learned Departmental Representative strongly supporting the order of the assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mentioned that in the instant case notice was served on 29.8.2007. The delay is of more than 15 months, since the relevant assessment year ended on 31.3.2006. Thus, the impugned notice under S.142(1) of the Act was issued after expiry of 15 months from the end of the due date 31.3.2006 provided in S.142(1) of the Act. Such a delay of 15 months cannot be called reasonable delay, covered under the deemed provisions of the proviso to S.142(1)(i) of the Act. Per contra, the Revenue argues that the said proviso does not specify any other time limits and therefore, the notice issued after 15 months delay should also be deemed valid. We agree with the argument of the Learned Departmental Representative for the Revenue. Provisions contain the op ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by limitation or not. At this stage, it is necessary to look into the provisions contained u/s 142(1) of the Act. 142 (1) For the Purpose of making an assessment under this Act, the AO may serve on any person who has made a return (under section 115WD or section 139 (or in whose caswe the time allowed under sub-section (1) of section 139] for furnishing the return has expired] a notice requiring, on a date to be therein specified- (i) Where such person has not made a return (within the time allowed under sub-section (1) of section 139 (or before the end of the relevant assessment year] to furnish a return of his income or the income of any other person in respect of which he is assessable under this Act, in the prescribed form and ve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his amendment will take effect from 1st April, 2006. It is further proposed to provide that the notice referred to in said sub-section for the purposes of said clause served after the end of the relevant assessment year commencing on or after 1st April, 1990 shall be deemed to be a notice served in accordance with the provisions of the aforesaid sub-section. This amendment will take effect retrospectively from 1st April, 1990. A plain reading of section 142(1) along with its proviso and explanations to Notes makes it clear that in a case where no return of income has been filed within the time allowed u/s 139(1) of the Act, the AO is vested with power to issue notice u/s 142(1) even after the end of the relevant assessment year. When ..... X X X X Extracts X X X X X X X X Extracts X X X X
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