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TMI Blog2001 (12) TMI 55X X X X Extracts X X X X X X X X Extracts X X X X ..... al was correct in law in holding that on the facts of the case of the present assessee, the case will be falling under section 147(b) and not under section 147(a)? (d) Whether the Income-tax Appellate Tribunal was right in holding that the conditions precedent for invoking section 147(b) of the Act are not satisfied? (e) Whether the order of the Income-tax Appellate Tribunal is perverse as it has failed to consider material and relevant facts?" The factual position, in a nutshell, is as follows: The assessee filed original return of income for the assessment year 1981-82 on August 31, 2001 (sic), declaring an income of Rs.62,768 and for the assessment year 1982-83 on September 1, 1982, declaring an income of Rs.60,542. The assessment for the assessment year 1981-82 was completed under section 143(1) and the income declared in the return was accepted. Similarly, the assessment for the assessment year 1982-83 was completed under section 143(3) and the income of Rs.60,790 was accepted vide order dated March 6, 1985. The Assessing Officer (in short "the A.O."), subsequently received a complaint along with documentary evidences in respect of the assessment years 1980-81 to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held as under: "The notice being invalid the reopening is not according to law and reassessments so framed are liable to be quashed." Aggrieved by the said order passed by the Tribunal dated December 19, 2000, the Revenue preferred appeals before this court wherein substantial questions of law, as set out above, have been formulated. Mr. J.R. Goel, learned counsel appearing on behalf of the appellant, submitted that the learned Tribunal ought not to have allowed the question of limitation to be raised inasmuch as the only question, which was raised before the learned Tribunal by the assessee, was as under: "That the Income-tax Officer erred in assuming the jurisdiction under section 147 because of the absence of reasons for reopening and violation of the doctrine of natural justice and the Commissioner of Income-tax (Appeals) was wrong in confirming the same." Learned counsel further contended that in any event having regard to the fact that section 147(a) of the Act would be attracted in the instant case, the question of the proceedings being barred by limitation did not arise. Learned counsel sought to raise another question to the effect that section 149 of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all also be deemed to be cases where income chargeable to tax has escaped assessment, namely: (a) where no return of income has been furnished by the assessee, although his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax; (b) where a return of income has been furnished by the assessee but no assessment has been made and it is noticed by the Assessing Officer that the assessee has understated the income or has claimed excessive loss, deduction, allowance or relief in the return;" Sections 148 and 149 of the Act read as under: "148. Issue of notice where income has escaped assessment.-(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 presc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the income chargeable to tax which has escaped assessment amounts to or is likely to amount to one lakh rupees or more for that year. (2) The provisions of sub-section (1) as to the issue of notice shall be subject to the provisions of section 151. (3) If the person on whom a notice under section 148 is to be served is a person treated as the agent of a non-resident under section 163 and the assessment, reassessment or recomputation to be made in pursuance of the notice is to be made on him as the agent of such non-resident, the notice shall not be issued after the expiry of a period of two years from the end of the relevant assessment year." Time limit for issue of notice under section 148: ------------------------------------------------------------------------------ Up to four years Beyond four years, Beyond seven years from the end of but up to seven but up to ten years the relevant years from the from the end of the assessment year end of the rele- relevant assessment assessment year year ----------------------- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er bearing on the assessment. The information may be obtained even on the basis of the record of the previous assessment year from an investigation and if the information is derived from an external source of any kind then such external source would include discovery of new and important matters or knowledge of fresh facts, which were not presented at the time of the original assessment. Admittedly, here the word 'information' as used in section 147(b) will be falling in the last category as admittedly the Assessing Officer received a complaint with document and it was not from the earlier records. If these are the facts, then naturally the case of the present assessee will be falling under section 147(b) and certainly not under section 147(a) and we conclude accordingly from external source, which included discovery of new and important matters relating to fresh facts which were not presented at the time of the original assessment." We agree with the said conclusion. In view of the aforementioned pronouncement of the apex court, there cannot be any doubt whatsoever that section 147(b) of the Act would be attracted. Learned counsel for the appellant is not correct in conte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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