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TMI Blog2012 (11) TMI 664X X X X Extracts X X X X X X X X Extracts X X X X ..... oduced below:- "It is humbly stated that while deciding the above issue the amendment made to section 143(2) vide finance bill 2006 with retrospective effect from 01/10/1991 has been overlooked. Section 147 is merely a machinery section. If notice is served under section 148, assessment/reassessment has to be completed either under section 143(1) or 143(3) or 144. Consequently, if the Assessing Officer wants to complete assessment/reassessment under scrutiny under section 143(3), he will have to issue a notice under section 143(2). Such notice can be issued within 12 months from the end of the month in which the return in response to notice under section 148 was submitted. If however, such return was submitted during October 1, 1991 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... suggested by the Revenue. 4. We have heard both the sides. Admittedly, an amendment took place in section 143(2) of IT Act and the relevant portion is as under:- Section 143(2) of the I.T.Act Sec.143(2) Where a return has been furnished under section 139, or in response to a notice under sub- section (1) of section 142, the Assessing Officer shall,- (i) where he has reason to believe that any claim of loss, exemption, deduction, allowance or relief made in the return is inadmissible, serve on the assessee a notice specifying particulars of such claim of loss, exemption, deduction, allowance or relief and require him, on a date to be specified therein to produce, or cause to be produced, any evidence or particulars specified therein or o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted an error. This is the grievance that a wrong provision of the IT Act was made the basis of deciding the appeal, hence the mistake is apparent and rectifiable u/s.254(2) of IT Act. 4.3. We find force in the miscellaneous petition of the Revenue. As far as the provisions of section 143(2) are concerned, a notice is required to be issued by the AO before finalization of assessment where a scrutiny or investigation is required for completion of an assessment. However, the present assessment is not only an assessment u/s.143(3) but an assessment when the case was re-opened and a notice u/s.148 was issued. It appears that the Tribunal has lost the sight of the fact that this is the case of reassessment since undisputedly a notice u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 06. For the sake of clarity and completeness relevant provisions of the IT Act are reproduced below: Sec. 148 - Issue of notice where income has escaped assessment. 148. [(1)] Before making the assessment, reassessment or recomputation under section 147, the Assessing Officer shall serve on the assessee a notice requiring him to furnish within such period, [* * *], as may be specified in the notice, a return of his income or the income of any other person in respect of which he is assessable under this Act during the previous year corresponding to the relevant assessment year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed; and the provisions of this Act s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e a valid notice.] [Explanation : For the removal of doubts, it is hereby declared that nothing contained in the first proviso or the second proviso shall apply to any return which has been furnished on or after the 1st day of October, 2005 in response to a notice served under this section.] [(2) The Assessing Officer shall, before issuing any notice under this section, record his reasons for doing so.] 4.4. On account of the said amendment, as long as a notice u/s.143(2) is issued before the expiry of the time limit as prescribed in 2nd proviso(b) for making the re-assessment, even if had been issued beyond the one year time limit from the date of the filing of the return, the effect of this amendment is to validate all those not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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