2014 (10) TMI 5 - HC - Income Tax

High Court clarifies intimation vs. assessment, allows revised return filing

Tata Metaliks Ltd. Versus CIT III, Kolkata

Tata Metaliks Ltd. Versus CIT III, Kolkata - [2014] 368 ITR 643 (Cal) Issues:Interpretation of provisions of Sections 139 and 143 of the Income Tax Act, 1961 - Completion of assessment on issuance of intimation under Section 143(1) - Validity of revised return filed after intimation - Applicability of precedents in determining completion of assessment.Analysis:The appeal before the Calcutta High Court involved the question of law regarding the completion of assessment under Sections 139 and 143 of the Income Tax Act, 1961. The appellant contended that the intimation under Section 143(1) issued on August 8, 2000, did not amount to completion of assessment, allowing the filing of a revised return on March 31, 2001, within the time provided under Section 139(5). The appellant relied on the decision in the case of Assistant Commissioner of Income Tax versus Rajesh Jhaveri Stock Brokers (P) Ltd. to support their argument that assessment was not completed upon issuance of intimation under Section 143(1).The respondent, representing the Revenue, argued that the intimation issued on August 8, 2000, signified the completion of assessment as the original return was accepted, and no further particulars were sought under Section 143(2). The respondent emphasized that the revised return filed on March 31, 2001, was not accepted due to the completed assessment. The respondent referred to precedents to distinguish the appellant's reliance on Rajesh Jhaveri case, highlighting the context of reassessment in the Supreme Court's interpretation.The High Court analyzed the Tribunal's decision and the provisions of Section 143(1) of the Income Tax Act. The Court referred to the Rajesh Jhaveri case and the distinction between intimation and assessment under Section 143(1). It was noted that the provision allowed for assessment under Section 143(1) without prejudice to the Assessing Officer's authority to resort to Section 143(2) for further assessment. The Court concluded that the intimation under Section 143(1) did not equate to completion of assessment, thereby allowing the filing of a revised return within the prescribed time.The Court upheld the appellant's argument, finding in favor of the assessee and against the Revenue. The appeal was allowed, emphasizing that the completion of assessment was not triggered solely by the issuance of intimation under Section 143(1). The judgment provided a detailed analysis of the legal provisions and precedents to support the decision, ensuring clarity on the interpretation of the Income Tax Act in relation to assessment completion and revised return filing.