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TMI Blog2018 (10) TMI 614X X X X Extracts X X X X X X X X Extracts X X X X ..... ant point of time, we feel it will be inappropriate and inequitable to remand the matter to the Assessing Officer with a direction to furnish the reasons and to proceed in accordance with law. Assessment proceedings quashed on the ground of non-furnishing of reasons for re-opening of assessment and also taking note of the monetary limit involved in this appeal, which is less than ₹ 2 lakhs. - Decided against the revenue. - Tax Case (Appeal) No.862 of 2005 - - - Dated:- 26-9-2018 - Mr. T. S. Sivagnanam And Mrs. V. Bhavani Subbaroyan JJ. For the Appellant : Mrs.R.Hemalatha For the Respondents : No appearance JUDGMENT T. S. SIVAGNANAM, J. This Tax Case Appal by the Revenue, filed under Section 260- A of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax vs. C.Palaniappan [reported in (2011)241 CTR 207] . The assessee in the said case is the co-owner along with the assessee in the instant appeal in respect of the subject building. The relevant portion of the judgement would run thus: 16. The explanation to the said Section was also added under Finance Act 2006, with effect from 01.10.2005, that by way of removal of any doubts, the first proviso or the second proviso will not have any application to a return furnished on or after 1st of October 2005 in response to a notice served under the Section. The effect of the amendment inserting the proviso, is stated to be as follows: The first proviso to section 148(1) provides that where a return has been furnished duri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 148 of the Act, requiring the assessee to file the revised return of his income or income of any other person in respect of which he is assessable under the Act during the previous year corresponding to the relevant assessment year in the prescribed form and verified in the prescribed manner and setting forth particulars as may be prescribed, then the return filed shall be treated as if such a return is one required to be filed under Section 139 of the Act, to follow the other provisions of the Act. Chapter XIV of the Act deals with the procedure for assessment. 18. Leaving aside the other provisions on the filing of the return and self-assessment which are not relevant for the purpose of our case, the next relevant provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r particulars specified thereon, on which the assessee may rely, in support of such claim. Going by the provisions of Section 143(2) of the Act as applicable to the proceedings under Section 148 of the Act, prior to the insertion of the proviso to Section 148(1) of the Act, the Officer concerned is duty bound to issue the notice within the period of limitation of 12 months from the end of the month in which the return was furnished. In other words, where on a return filed pursuant to the notice under Section 148 of the Act, a notice is served under Section 143(2) of the Act after the expiry of the 12 months' period, under normal circumstances, the period of limitation would certainly hit the proceedings under Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reassessment or recomputation, as specified under Section 153(2) of the Act and nothing beyond. Hence, in respect of the returns filed between the period 1.10.1991 and 30.9.2005 pursuant to the proceedings under Section 148 would not be hit by limitation on the issuance of notice under Section 143(2) of the Act. The only limitation that has to be seen to confer validity to the proceedings under Section 148 , would be the time limit given under Section 153(2) for making the assessment, reassessment, recomputation and nothing beyond. Thus even though under normal circumstances, for a regular assessment falling under Section 143 proceedings, a notice issued after the expiry of 12 months would make the proceedings illegal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... answering the question in favour of the Revenue, decided the case in favour of the assessee, on the merits of the matter, inasmuch as reasons for re-opening were not furnished. The facts are no different in the instant case, as inspite of request made by the deceased assessee, the reasons were not furnished. Therefore, at this distant point of time, we feel it will be inappropriate and inequitable to remand the matter to the Assessing Officer with a direction to furnish the reasons and to proceed in accordance with law. 9.In the light of the above, the appeal filed by the Revenue is partly allowed and the Substantial Question of Law is answered in favour of the Revenue, in the light of the decision in the case of Commissioner of Income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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