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TMI Blog2016 (6) TMI 551X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on a totally different trajectories in the sense that notice under section 143(2) is issued in order to make regular assessment of an assessee on yearly basis, while notice under section 148 is to be issued on satisfaction of certain conditions prescribed therein where the income of the assessee escaped assessment. The escapement of income is not one of the conditions for issue of notice under section 143(2) of the Act. A limited time is available for issue of notice under section 143(2) of the Act and also to complete assessment under section 143(3) of the Act initiated through notice under section 143(2). While an extended period is available for issue of notice under section 148 of the Act and to make assessment initiated by issue of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hri S.K. Mittal, DR Subhash Aggarwal and Vineet Jain for the Appellant. S.K. Mittal, DR for the Respondent. ORDER Rano Jain, Accountant Member - The cross appeals filed by the assessee and the Revenue are directed against the order of learned Commissioner of Income Tax (Appeals)-II, Ludhiana dated 29.4.2008 for assessment year 2002-03 passed under section 250(6) of the Income Tax Act, 1961 (in short 'the Act) and the appeal of the assessee in ITA No. 1136/Chd/2011 is directed against the order of learned Commissioner of Income Tax (Appeals)-II, Ludhiana dated 14.9.2011 for assessment year 2002-03, challenging the action of the CIT (Appeals) in sustaining the levy of penalty under section 271(1)(c) of the Act. 2. We will ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed under section 143(1) of the Act could be taken for scrutiny only by issuing notice under section 143(2) of the Act within the prescribed time of twelve months from the date of filing of return. In this way, he dismissed the ground raised by the assessee. 5. The learned counsel for the assessee during the course of hearing before us stated that the assessee had filed its return of income as on 30.10.2002, which got revised as on 31.3.2004. The revised return was within the time limit. The time available with the Assessing Officer for issue of notice under section 143(2) was upto 31.3.2005 i.e. within twelve months from the end of the month in which the return was filed by the assessee. The Assessing Officer has issued notice under se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... undisputed facts of the case are that the assessee had filed return for assessment year 2002-03 as on 30.10.2002. The return was revised as on 31.3.2004. Undoubtedly, the revised return was with the time as per the provisions of section 139(5) of the Act, which read as under : [(5) If any person, having furnished a return under sub-section (1), or in pursuance of a notice issued under sub-section (1) of section 142, discovers any omission or any wrong statement therein, he may furnish a revised return at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier : Provided that where the return relates to the previous year relevant to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee in the present case had filed the revised return, the same being within the prescribed time. Admittedly, from the chronology of events, it appears that notice under section 148 of the Act has been issued within the time limit available to the Assessing Officer for issuing notice under section 143(2) of the Act. Now, the issue to be decided is whether under the said circumstances, the Assessing Officer could have voluntarily issued notice under section 148 of the Act or not. 11. We do not find the act of the Assessing Officer in issuing notice under section 148 of the Act, within the time limit available for issue of notice under section 143(2) of the Act being as per law. The Income Tax Act is a self contained Act, whereby ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , we do not understand, specifically in the background of the legal position that the scope of assessment made on issue of notice under section 148 of the Act has limited as against the wide scope of assessment available to him by issuing notice under section 143(2) of the Act. Reliance placed by the learned counsel for the assessee on the judgment of Madras High Court in the case of Qatalys Software Technologies Ltd. (supra) is not out of place, whereby the Hon'ble Court, in the similar circumstances, allowed the appeal of the assessee, relying on another decision of the Madras High Court in the case of CIT Vs. K.M. Pachaiyappan (2008) 304 ITR 264 (Mad), wherein the Court has held that no reassessment proceedings could be initiated so ..... X X X X Extracts X X X X X X X X Extracts X X X X
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