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TMI Blog2007 (7) TMI 229X X X X Extracts X X X X X X X X Extracts X X X X ..... nation 2 to Section 147 which provides that the assessing officer can reopen the assessments even if the assessments have not been completed under Section 143 and only intimation had been sent, if the conditions laid under Section 147 are fulfilled? 2. Whether on the facts and circumstances of the case, the Tribunal is right in not considering that the addition of incentive bonus to the total income is proper or not in view of the decision of the Madras High Court reported in the case of CIT Vs. E .A. Rajendran reported in [1999] 235 ITR 514 in which it has been held that no deduction except what has been allowed under Section 16 is admissible?" 2. The facts leading to the above substantial questions of law are as under: 3. The assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... el appearing for the Revenue submitted that the Assessing Officer has the power to reopen the assessments once the conditions are satisfied for the purpose of reopening the assessment under Section 147. It is also further submitted that the Assessing Officer had recorded his reasons for reopening the assessment and the present case is covered by Explanation 2 of Section 147 which would clearly empower the assessment officer to pass orders. 5. Heard the counsel. In this case, Return of income was filed under Section 139(4) of the Act on 15.03.2000 and notice under Section 143(2) for framing assessment under Section 143(3) could have been issued upto 31.03.2000. Therefore, a valid Return of income was pending as on 15.03.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bsp; This note was also not communicated to the trustees. When we examine the note dated November 10, 1965, on the file of 1963-64 nothing flows from that as well. In any case if it is an order, it would be appealable under section 249 of the Act. Since the period of limitation starts from the date of intimation of such an order, it is imperative that such an order be communicated to the assessee. Had the Income-tax Officer passed any final order, it would have been communicated to the assessee within a reasonable period. In any case, what we find is that the note dated November 10, 1965, is merely an internal endorsement on the file without there being an indication if the refund application has been finally rejecte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der section 143(2), the return had been accepted as correct. It may be argued that thereafter recourse could be taken to section 147, provided fresh material had been received by the Assessing Officer after the expiry of limitation fixed for framing the original assessment. So far as the present case is concerned, we are of the view that it is evident that, faced with severe paucity of time, the Assessing Officer had attempted to travel the path of section 147 in the vain attempt to enlarge the time available for framing the assessment. This is not permissible in law." 7. Applying the principles enunciated in the judgments of the Supreme Court as well as the Delhi High Court, cited supra, the Tribunal is right in coming to a co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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