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TMI Blog2012 (12) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... stments were made under Section 143(1-A) of the Act on a debatable issue, which was subsequently set aside by the Commissioner and thereafter there being no regular assessment rightly, the Officer assumed jurisdiction under Section 147 of the Act as a case of an escaped assessment for making the original assessment under Section 147 of the Act - Decided in favor of revenue. Decision in Assistant Commissioner of Income-Tax Versus Rajesh Jhaveri Stock Brokers P. Limited [2007 (5) TMI 197 - SUPREME COURT]followed. - Tax Case (Appeal) No.2395 of 2006 - - - Dated:- 8-10-2012 - Chitra Venkataraman And K. Ravichandrabaabu, JJ Appellant Rep. by : Mr. J. Narayanaswamy JUDGEMENT Per : Chitra Venkataraman, J : The Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee could not produce necessary document in support of his claim, the assessment was completed. Aggrieved by this, the assessee went on appeal before the Commissioner of Income Tax (Appeals), who agreed with the assessee that there was no ground for reopening the assessment. There was no new fact recorded permitting the Assessing officer to take up reassessment proceedings. In the circumstances, the assessee's appeal was allowed. Aggrieved by the same, the Revenue went on further appeal before the Tribunal, who held that there was no new information which had come into possession of the Assessing Officer for reopening the assessment, thereby rejected the Revenue's appeal. Aggrieved by this, the Revenue is on appeal before this Court. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... escaped assessment, the officer could take up proceedings for assessing or reassessing such income or recompute the loss of depreciation subject to the provisions of Section 148 to 153 of the Act. 6. In the decision reported in 291 ITR 500 - ASST. CIT v. RAJESH JHAVERI STOCK BROKERS P. LTD, after elaborately considering the amendment to Section 143(1)(a) of the Act, the Apex Court pointed out that the intimation under Section 143(1)(a) cannot be treated to be an order of assessment. Under Section 143(1)(a) as it stood with effect from April 1, 1989, under proviso to Section 143(1)(a) only arithmetical errors in the return, the claim which are prima facie inadmissible alone were allowed. Thus what was possible was correction of errors app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pex Court pointed out that under the substituted provision, with effect from 1987, if the Assessing Officer has reason to believe that income has escaped assessment it confers jurisdiction on the Assessing Officer to reopen the assessment. Thus, the case herein is covered by the main provision and not the proviso. So long as the ingredients of Section 147 are fulfilled, the Assessing Officer is free to initiate proceeding under Section 147 and failure to take steps under Section 143(3) will not render the Assessing Officer powerless to initiate reassessment proceedings even when intimation under Section 143(1) had been issued. 7. Thus, applying the law declared by the Apex Court, on the admitted facts, it is seen that prima facie adjustme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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