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TMI Blog2020 (12) TMI 525X X X X Extracts X X X X X X X X Extracts X X X X ..... ad in law. In assessee's case under consideration the time limit to issue notice under section 143(2) was not expired therefore assessing officer cannot issue the notice under section 148 to make the reassessment under section 147 - we do not agree with the argument of ld DR to the effect that the Assessing Officer is free to initiate proceeding under section 147 and failure to take steps under section 143(3) will not render the Assessing Officer powerless to initiate reassessment proceedings under section 147 of the Act. In assessee's case the time available for issue of notice under section 143(2) of the Act is on or before 30.09.2014 and after 30.09.2014, the assessing officer cannot issue notice under section 143(2) of the Act to frame the assessment under section 143(3) - up to 30.09.2014, the assessing officer could have issued notice under section 143(2) of the Act to frame the assessment under section 143(3) of the Act and the assessing officer could have assessed all the income of the assessee including escaped income, thus there is no need to jump the queue and to issue notice under section 148 of the Act on 21.06.2014, [before the expiry of time limit under secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leave to take additional grounds as the time of hearing of appeal. 3. Although, in this appeal, the assessee has raised multiple grounds of appeal but at the time of hearing, the solitary grievance of the assessee has been confined to the issue that reassessment proceedings initiated by the Assessing Officer u/s. 147/148 was bad in law. 4. Brief facts qua the issue are that the assesses filed his return of income electronically on 29.06.2013 showing total, income at ₹ 8,01,550/-. The assessee had shown income from three sources viz. income from Business', income from House Property' and 'Income from Other Sources' only. However, information alongwith a copy of sale deed dated 10.09.2011 was received regarding sale of commercial building and land appurtenant thereto by the assessee during the previous year relevant to the assessment year 2012-13. On perusal of the above Sale Deed dated 10.09.2011, the assessing officer noticed that the assessee,(Shree Prakash Singh) sold commercial building and land appurtenant thereto known as 'Jubilee Commercial Complex' situated at Gorakhpur in UP at an agreed price of ₹ 60 lakh, by two separate registered inst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the same and taking into account the valuation report of DVO had computed the long term capital gain of ₹ 5,50,17,042/-. 6. Aggrieved by the order of the Assessing Officer, the assessee carried the matter in appeal before the ld. CIT(A) who has held that the re-assessment proceedings initiated by the Assessing Officer was valid in the eye of law. Aggrieved, the assessee is in appeal before us. 7. We have heard both the parties and carefully gone through the submission put forth on behalf of the assessee along with the documents furnished and the case laws relied upon, and perused the fact of the case including the findings of the ld CIT(A) and other materials available on record. First of all, the assessee has raised legal issue before the Bench which goes to the root of the assessment itself and therefore we admit the same by relying on the decision of the Hon'ble Supreme Court in the case of National Thermal Power Co. Ltd. vs. Commissioner Of Income Tax, reported in 229 ITR 383(SC) (1998). Since, there was no new facts required to be looked into and the facts required for adjudicating the legal issue is in the assessment order as well as in the order of ld. CIT(A). Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of which reads as under:- 18. So long as the ingredients of section 147 are fulfilled, the Assessing Officer is free to initiate proceeding under section 147 and failure to take steps under section 143(3) will not render the Assessing Officer powerless to initiate reassessment proceedings even when intimation under section 143(1) had been issued. The aforesaid observation by the Apex Court is made in the context of the contention of the assessee that an Assessing officer cannot initiate reassessment proceedings, where intimation under Section 143(1) has been issued and the Revenue failed to take steps to issue notice under Section 143(2) and complete assessment under Section 143(3) of the Act. The aforesaid contention was negatived in the above referred para on the ground that in the context of the facts before it, the time to issue notice under Section 143(3) of the Act had expired. It is only thereafter that the Assessing Officer could have reason to believe that the income chargeable to tax has escaped assessment. It is in such cases that the Assessing Officer would not be prohibited under Section 147/148 of the Act from seeking to recover tax on income which has escaped assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9, as also sections 148 to 152 are substantially different from the provisions as they stood prior to such substitution. Under the old provisions of section 147, separate clauses (a) and (b) laid down the circumstances under which income escaping assessment for the past assessment years could be assessed or reassessed. To confer jurisdiction under section 147(a) two conditions were required to be satisfied firstly the Assessing Officer must have reason to believe that income profits or gains chargeable to income tax have escaped assessment, and secondly he must also have reason to believe that such escapement has occurred by reason of either (i) omission or failure on the part of the assessee to disclose fully or truly all material facts necessary for his assessment of that year. Both these conditions were conditions precedent to be satisfied before the Assessing Officer could have jurisdiction to issue notice under section 148 read with section 147(a). But under the substituted section 147 existence of only the first condition suffices. In other words if the Assessing Officer for whatever reason has reason to believe that income has escaped assessment it confers jurisdiction to re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is on or before 30.09.2014 and after 30.09.2014, the assessing officer cannot issue notice under section 143(2) of the Act to frame the assessment under section 143(3) of the Act. However, in the assessee's case, the assessing officer issued notice under section 148 of the Act on 21.06.2014. Thus, assessing officer issued notice under section 148 within the period available before him to issue notice under section 143(2) of the Act. That is, up to 30.09.2014, the assessing officer could have issued notice under section 143(2) of the Act to frame the assessment under section 143(3) of the Act and the assessing officer could have assessed all the income of the assessee including escaped income, thus there is no need to jump the queue and to issue notice under section 148 of the Act on 21.06.2014, [before the expiry of time limit under section 143(2) of the Act], that is, assessing officer should not have jumped the queue, as the time limit to issue notice under section 143(2) is available before the assessing officer, up to 30.09.2014. In the assessee's case under consideration, the assessing officer jumped the queue and issued notice under section 148 of the Act within the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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