9911796707
TMI Blog2009 (4) TMI 1020X X X X Extracts X X X X X X X X Extracts X X X X ..... 96-97 and the corresponding accounting year ended on 31-3-1996. The assessee has filed its return of income on 30-10-1996 admitting an income of ₹ 56,97,570. The return was processed under Section 143(1)(a) of the Income Tax Act, 1961 and the same was accepted on 21-4-1997. Later, the assessing officer issued a notice under Section 143(2) of the Income Tax Act, 1961 for detailed enquiry and the petitioner also filed all the required details. The assessing officer completed the regular assessment under Section 143(3) of the Income Tax Act, 1961 on 19-2-1999 determining the total income of ₹ 95,08,340. Subsequently, the respondent issued a notice under Section 148 of the Act on 26-4-2003 requiring the petitioner to file a return o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sent on 28-3-2003. Due date prescribed for reopening of the assessment under proviso to Section 147 of the Act is on or before 31-3-2001. Therefore, it is clear that notice was beyond the period of four years. Even though there is a dispute regarding the actual date of notice, but considering both the dates viz., 6-4-2003 and 28-3-2003, they are barred by limitation. Further, it is also seen from the records that there is no specific finding by the assessing officer that income has escaped assessment due to failure on the part of the assessee to disclose fully or truly all material facts necessary for the assessment. There is no dispute that the assessing officer has not given any finding that there is an escapement of income due to failur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Section 143 or this section has been made for the relevant assessment year, no action shall be taken under this section after the expiry of four years from the end of the relevant assessment year, unless any income chargeable to tax had escaped assessment for such assessment year by reason of the failure on the part of the assessee to make a return under Section 139 or in response to a notice issued under Sub-section (1) of Section 142 or Section 148 or to disclose fully and truly all material facts necessary for his assessment for that assessment year. In addition to the time-limits provided for under Section 149, the law has provided another limitation of four years under the proviso to Section 147. As far as the above proviso to S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a) Ltd. v. Dy. CIT (2000) 241 ITR 672 (Mad). In the said judgment, the learned Single Judge considered the scope of proviso to Section 147 of the Income Tax Act in detail and held as follows: The pre-condition for the exercise of the power under Section 147 in cases where power is exercised within a period of four years from the end of the relevant assessment year is the belief reasonably entertained by the assessing officer that any income chargeable to tax has escaped assessment for that assessment year. However, when the power is invoked after the expiry of the period of four years from the end of the assessment year, a further pre-condition for such exercise is imposed by the proviso namely, that there has been a failure on the part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in law that there is also a failure on the part of the assessee to file the returns referred to in the proviso or a failure to fully and truly disclose the material facts. The reasons referred to in the main para of Section 147 would, in cases where the proviso is attracted, include reasons referred to in the proviso and it is necessary for the assessing officer to record that any one or all the circumstances referred to in the proviso existed before the issue of notice under Section 147. After an assessment has been made, in the normal circumstances, there would be no reason for anyone to doubt that the assessment has been made on the basis of all relevant facts. If the assessing officer chooses to entertain the belief that the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expiry of four years from the end of the assessment years 1992-93 and 1993-94. In respect of the assessment year 1992-93, notice if at all necessary, should have been issued on or before 31-3-1997, whereas in fact the notice was issued only on 17-7-1998. For the assessment year 1993-94, notice under Section 148 should have been issued on or before 31-3-1998, whereas in fact, the notice was issued only on 17-7-1998. So, notice under Section 148 for both the assessment years were issued after the expiry of four years from the respective assessment years. Therefore, any notice issued after the expiry of four years from the end of the relevant assessment year, is illegal and is without jurisdiction. Hence the assessment years completed, are ba ..... X X X X Extracts X X X X X X X X Extracts X X X X
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