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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 ..... e Court was delivered by P. P. S. JANARTHANA RAJA J - This appeal is filed under Section 260A of the Income Tax Act, 1961 by the Revenue, against the order of the Income Tax Appellate Tribunal, 'D' Bench, Chennai in I.T.A. No.228/Mds/2002 dated 28.10.2005, raising the following substantial questions of law: "1. Whether on the facts and circumstances of the case, the Tribunal was right in law in not considering the Explanation 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 147 of the Act. Aggrieved by the order, the assessee filed an appeal to the Commissioner of Income-tax (Appeals). The C.I.T.(A) allowed the appeal. Aggrieved, the Revenue filed an appeal to the Income-tax Appellate Tribunal ("Tribunal" in short). The Tribunal dismissed the appeal and confirmed the order of the C.I.T.(A). Hence the present appeal by the Revenue. 4. Learned Standing Counsel 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 Exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this note would show that it could not be said that the Income-tax Officer gave finality to the refund since no refund is granted either in the hands of the trust or in the hands of the beneficiaries. It is an inconclusive note where the Income-tax Officer left the matter at the stage of consideration even with regard to refund in the hands of the beneficiaries. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d be no restrictions or constraints on its being taken into consideration by the Assessing Officer for framing the then current assessment. If the assessment is not framed before the expiry of the period of limitation for a particular assessment year, it would have to be assumed that since proceedings had not been opened under 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 at ..... X X X X Extracts X X X X X X X X Extracts X X X X
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