9911796707
TMI Blog2023 (1) TMI 1303X X X X Extracts X X X X X X X X Extracts X X X X ..... leased land. Vide letter dated 14.12.1995, the permission for construction of the said Cinema Hall was granted by the Sub Divisional Magistrate, Fazilka. On 11.07.1958 (Annexure P-3), the license under Section 5 of the Punjab Cinema (Regulation) Act, 1952 was issued in favour of Raja Ram with the name of M/s Sandeep Theatre. In the year 1962, for the management of the said theatre, a partnership firm in the name of M/s Sandeep Theatre was sought to be established. A partnership deed dated 17.09.1962 (Annexure P-4) was executed, which would have effect from 01.04.1962. Clause 3 of the said partnership deed is reproduced as follows:- "3. That the partnership concern shall manage the talkies exhibit Cinema Films and other dramatic shows and give on rent the stalls etc." Vide sale deeds dated 29.08.1966 and 03.09.1966 (Annexure P-5 colly), Raja Ram Nagpal HUF became owner of the land upon which the theatre was constructed on which the lease had already been executed. This partnership firm M/s Sandeep Theatre regularly maintained its account. The copy of balance sheet for assessment year 1995-1996, 1996-1997, 1997-1998, 1998-1999, 1999- 2000, 2000-2001, 2001-2002, 2002-2003 and 2006 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g) but accepted the expenditure incurred by him on the renovation of the theatre building and in such circumstances, the completion of assessment in the case of appellant assessee in the status of firm' at a figure of Rs. 5,50,000/- was highly objectionable, absolutely wrong and unjustified. Accordingly, on the facts and in the circumstances of the case, the AO was not legally right in completing the assessment in the status of firm' at a total income of Rs. 5,50,000/-. This ground of appeal of the appellant is accordingly accepted." Till date, no appeal has been filed against order dated 12.03.2013 and thus it attained finality. However, vide letter/notice dated 11.03.2014 (Annexure P-11) the respondent issued a notice stating that for the assessment year 2007-2008 the assessable chargeable income to tax has escaped assessment within the meaning of section 147 of the Income Tax Act, 1961. Subsequently, a notice under section 142(1) of Act 1961 was issued to the petitioner on 17.11.2014 (Annexure P-12) directing that a correct return of income in the prescribed format may be submitted. The said notice was accompanied by a shows cause notice under section 144 of Act 1961 d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the firm. The property has never been debited to the capital account of the partners on dissolution. As per licence, the renovation was required and done due to advancement in Technology. The property was never asset of the firm and operation of Section 45 (4) is one the date of transfer i.e 31.03.2006 and thus, no assessment could be made for the assessment year 2007-2008. Heard. Reference at the very outset can be made to licence issued to the petitioner on 11.07.1958 (Annexure P-3), which reads as under:- "Annual licence under section 5 of the Punjab Cinemas (Regulation)Act, 1952 The building know as (a) Sandeep situated at (b) Abohar within the town of Abohar in the district of Ferozepur licensed under section 5 of the Punjab Cinemas (Regulation) Act, 1952, as a place where exhibitions by means of a cinematography may be given. This licence has been granted to (c) Shri Raja Ram and shall remain in force until the 10th July, 1959 provided that the said (c) Shri Raja Ram or any person to whom with the consent of the licensing authority the xx is transferred xxxxxxxx used in the said (a) Sandeep Theatre, Abohar This licence is granted subject to the provisions of the Pun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of 149 of Act 1961, the time limit of notice under Section 148 was issued after expiry of the prescribed period of limitation i.e six years. Section 149 of Act 1961 reads as under:- "149. Time limit for notice (1) 5 No notice under section 148 shall be issued for the relevant assessment year,- (a) in a case where an assessment under sub- section (3) of section 143 or section 147 has been made for such assessment year,- (i) if four years have elapsed from the end of the relevant assessment year, unless the case falls under sub- clause (ii) or sub- clause (iii); (ii) if four years, but not more than seven years, have elapsed from the end of the relevant assessment year unless the income chargeable to tax which has escaped assessment amounts to or likely to amount to rupees fifty thousand or more for that year; (iii) if seven years, but not more than ten years, have elapsed from the end of the relevant assessment year, unless the income chargeable to tax which has escaped assessment amounts to or is likely to amount to 1 ] rupees one lakh or more for that year; (b) in any other case,- (i) if four years have elapsed from the end of the relevant assessment year, unless ..... 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