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TMI Blog2016 (1) TMI 376X X X X Extracts X X X X X X X X Extracts X X X X ..... 05.2001 whereas in the instant case reassessment notice under Section 148 of the Act was issued on 11.04.2001, which was within the period of limitation. Consequently, we are of the opinion that the notice issued under Section 148 of the Act was issued within the period of limitation. The question of invoking the provision of Section 150(1) of the Act does not arise and it is not necessary for us to dwell on this aspect of the matter. We may however, observe that Section 150 of the Act provides that the power to issue a notice under Section 148 of the Act in consequence of or giving effect to any finding or direction of the Appellate or Revisional Authority or the Court is subject to the provisions contained in Section 150(2) of the Act. Section 150(2) of the Act provides that the direction issued under Section 150(1) of the Act cannot be given by the Appellate or Revisional Authority or by the Court if on the date on which the order in appeal or revision was passed, the reassessment proceeding had become barred by time. Under Section 150(2) of the Act the Appellate or the Revisional Authority or the Court could give direction for reassessment only in respect of that assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 346477/- and for the balance amount, addition of ₹ 653523/- was given. The A.O.has generally discussed these bill books and has nowhere meticulously gone through these bill books and books of accounts as evident from the discussion in para 4 of the assessment order on 31.3.94. The present A.O. is directed to carefully study these bill books since the blank bill books were found from the custody of the appellant it is obvious that the credit balances atleast would be bogus. The same could be true about the purchases. How this figure of ₹ 653523/- has been arrived is not known. The A.O. should work out the exact quantum of credit balance and the bogus purchases which have been introduced in the books of account of the appellant by means of blank bill books and arrived the figure and take action u/s. 148 of I.T.Act 1961 if the limit is in excess of ₹ 100000/-. 3. Pursuant to the observation made by the Appellate Authority, the Assessing Officer issued a notice under Section 148 of the Act on 10.04.2001 recording reasons to believe that certain income chargeable to tax had escaped assessment by reason of the omission or failure on the part of the assessee to dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se, the Hon'ble Tribunal erred in law in quashing the assessment made u/s 143(3)/148 by observing that there was no failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment without appreciating that bogus purchases aggregating to ₹ 34,90,866/- were found to have been made by the assessee from six non-existent parties of Nagaland, and therefore it could not have been held that the assessee had disclosed fully and truly all material facts relating to the said bogus purchases at the time of assessment. 7. In this backdrop, we have heard Sri Krishna Agrawal, the learned counsel for the appellant and Sri S.D.Singh, the learned Senior Counsel along with Sri K.D.Vyas for the Assessee. 8. The learned counsel for the appellant submitted that the Tribunal committed a manifest error in holding that the assessment proceedings were invalid on the ground that the issuance of notice was beyond the period of four years from the end of the relevant assessment year without considering the provision of Section 150(1) of the Act. It was urged that there was no bar of limitation for issuance of notice under Section 148 of the Act as a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the present assessment year was filed on 31.12.91 declaring total income ₹ 1,88,,483/-. After examination of the seized material the assessment was completed u/s. 143(3) on 31.3.94 on a total income of ₹ 16,14,200/. After giving appeal effect to the CIT (A) order, as also under the provisions of section 154 of the IT Act, the total income was recomputed into the loss(-) ₹ 2,49,700/-. In this connection, during the course of the hearing of the appeal filed by the assessee for A.Y. 92-93 the ld. CIT (A) vide his appeal order dated 12.1.2001 para 13, for the reasons mentioned therein directed to carefully study the blank bill books, and work out the exact quantum of the credit balances and the bogus purchases which were introduced in the books of account by means of blank bill books. It has also been directed to take action u/s. 148 if the amount is in excess of ₹ 1 lac. In pursuance of these directions the seized ledger marked as Annexure ML-2/1 (for the period F.Y.90-91) has been examined with reference to the account of the persons in whose names the blank bill books were found. It has been found that the assesss has recorded the purchases from these pers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment order as under: (4) (I) Since the time-barring assessment was pending the assessee could furnish the details and information for assessment purpose for A.Y.1991-92. It was also required vide this office letter dated 29.3.93 and finally on 7.3.94 giving specific papers to be explained and get them verified from the regular books of account which pertained to the assessment year 1991-92. The assessee com.has furnished details etc. and also furnished explanation from time to time in respect of seized papers detailed in letter dated 7.3.1994 which have been duly considered and discussed. During the course of assessment proceedings, alongwith other details the assessee was asked to give the details of purchases, partywise, exceeding in amount of ₹ 20000/-.These details are placed in file at page 50 to 56 necessary notification of purchases were made from the seized ledger marked Annexure ML-2/1 which revealed that complete record of purchase was not recorded in this ledger. 12. From a perusal of aforesaid, it is apparently clear that the assessee furnished his explanation on each and every seized documents, which was marked as annexure ML-2/1 . 13. In the reasons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t case reassessment notice under Section 148 of the Act was issued on 11.04.2001, which was within the period of limitation. Consequently, we are of the opinion that the notice issued under Section 148 of the Act was issued within the period of limitation. 17. In the light of the aforesaid, the question of invoking the provision of Section 150(1) of the Act does not arise and it is not necessary for us to dwell on this aspect of the matter. We may however, observe that Section 150 of the Act provides that the power to issue a notice under Section 148 of the Act in consequence of or giving effect to any finding or direction of the Appellate or Revisional Authority or the Court is subject to the provisions contained in Section 150(2) of the Act. Section 150(2) of the Act provides that the direction issued under Section 150(1) of the Act cannot be given by the Appellate or Revisional Authority or by the Court if on the date on which the order in appeal or revision was passed, the reassessment proceeding had become barred by time. Under Section 150(2) of the Act the Appellate or the Revisional Authority or the Court could give direction for reassessment only in respect of that asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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