9911796707
TMI Blog1987 (4) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... thereof, notices under section 148 of the Income-tax Act, 1961, were issued by the Income-tax Officer to the assessee seeking to reassess it for the assessment years 1950-51 to 1958-59. The assessee failed to respond to the notices under section 148. On March 26, 1970, the Income-tax Officer made reassessments for these assessment years under section 147 read with section 144 of the said Act. Appeals were filed before the Appellate Assistant Commissioner and thereafter before the Income-tax Appellate Tribunal. It is not in dispute that whereas the issue in the third question before us was taken as a ground of appeal, it was not urged before the Tribunal. Three questions are referred to us and they read thus: " (1) Whether, on the facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovisions of section 147 of the said Act, which deals with income escaping assessment, have been applied. In his submission, section 143(3), section 144 and section 147 confer upon the taxing authority separate and independent powers of making assessments. At the outset, it must be noted that under the provisions of section 147 of the Income-tax Act, 1961, if the Income-tax Officer finds that income chargeable to tax has escaped assessment, " he may, subject to the provisions of sections 148 to 153, assess or reassess such income." Section 148 of the said Act requires the Income-tax Officer, before making an assessment or reassessment under section 147, to " serve on the assessee a notice containing all or any of the requirements which may ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er section 144, Mr. Salve reasoned, entitled the Income-tax Officer to estimate income on such material as was available and even if no material was available. Under section 147 of the said Act, however, there had to be some material and if the assessee did not respond to a notice under section 148 of the said Act, only an adverse inference could be drawn thereon. The approach of the taxing authority to an assessment under section 147 has to be materially different from its approach to an assessment under section 144. It was impermissible for the taxing authority to estimate income under section 147 as it could under section 144, because it was open to the assessee to show that upon the material before the taxing authority, no adverse infer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e) of the said Act. Section 246 sets out which orders are applicable ; in clause (c) it speaks of orders under section 143 of the said Act and in clause (e) of orders under section 147. Mr. Salve then referred to the provisions of section 263 of the said Act whereunder the Commissioner is invested with power to revise orders prejudicial to the Revenue; this power does not extend to orders of reassessments made under section 147. The context of all these provisions is entirely different. They have no bearing on the issue before us, namely, whether a best judgment assessment under section 144 can be made when the powers under section 147 are invoked and the assessee does not respond to the notice under section 148 of the said Act. Mr. Salve ..... X X X X Extracts X X X X X X X X Extracts X X X X
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