9911796707
TMI Blog2015 (7) TMI 917X X X X Extracts X X X X X X X X Extracts X X X X ..... on 120(2) of the Act authorised Commissioner to exercise / or perform functions of an Income Tax authority subordinate to him i.e. of Joint / Addl. Commissioner. Consequently, the impugned Notice cannot be said to be without jurisdiction on account of lack of sanction. So far as the reasons recorded by the Assessing Officer in support of the impugned Notice is concerned, we find that it clearly indicates that the information leading to the impugned notice was received from the Assessing Officer of the beneficiaries. However it is also recorded in the Notice itself that the same was issued after verification of the information. Thus, we do not accept Mr.Toprani's submission that the Assessing Officer failed to apply his mind independently ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -2008 and in its Return of Income, the Petitioner had declared that the trust stands dissolved as per the Deed of Dissolution dated 28 February 2007. The Petitioner's return of Income was processed under Section 143(1) of the Act on 25 March 2009. 3. On 20 March 2014, the impugned Notice was issued. The reasons in support of the impugned notice as communicated to the Petitioner read as under - 'On verification of the case record of the assessee Trust i.e. SANT TRUST for A.Y. 2007-08, it is seen that assessee has not offered any income arisen by way of transfer of capital asset on dissolution of Sant Trust for taxation. Section 45(4) of Income Tax Act says the profits and gains arising from transfer of capital asset by wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on as it is issued by an Assistant Commissioner of Income Tax on a sanction of the Commissioner of Income Tax. This is not permitted as in such cases the sanction in terms of Section 151(2) of the Act has to be that of Joint Commissioner of Income Tax. b) It was submitted that the original Return of Income tax filed by the Petitioner was processed under Section 143(1) of the Act but beyond the period of limitation provided under Section 143(1) of the Act. Thus there cannot be reopening of assessment while the Petitioner's Return is still pending assessment with the Assessing Officer. Further all material facts have been truly and fully disclosed in its regular return of Income. Thus the notice beyond a period of four years does not s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Joint Commissioner. Therefore, the sanction was appropriately obtained of the Joint Commissioner. b) The intimation under Section 143(1) is within the period of limitation as provided thereunder, as is evident from the intimation which has been annexed by the Respondent to its reply. Consequently, there is no pending assessment which would prohibit the Assessing Officer from issuing the impugned Notice. Further the fact that there was true and full disclosure in terms of the proviso to Section 147 of the Act is disputed by the Revenue. c) The decision of this Court in L.R.Patel Family is not applicable in the present case as it rendered in respect of fixed trust and not a discretionary trust as is the present facts. 6. We have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut jurisdiction on account of lack of sanction. 7. So far as the reasons recorded by the Assessing Officer in support of the impugned Notice is concerned, we find that it clearly indicates that the information leading to the impugned notice was received from the Assessing Officer of the beneficiaries. However it is also recorded in the Notice itself that the same was issued after verification of the information. Thus, we do not accept Mr.Toprani's submission that the Assessing Officer failed to apply his mind independently before issuing the impugned Notice. 8. As far as the issue with regard to the Intimation under Section 143(1) of the Act being beyond the period of time provided is concerned or that all material facts have been ..... X X X X Extracts X X X X X X X X Extracts X X X X
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