Assessing officer cannot invoke Section 142(1) post assessment completed under Section 143(3)(ii). The Court held that the assessing officer could not invoke Section 142(1) of the Income Tax Act after the assessment was completed under Section ...
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Assessing officer cannot invoke Section 142(1) post assessment completed under Section 143(3)(ii).
The Court held that the assessing officer could not invoke Section 142(1) of the Income Tax Act after the assessment was completed under Section 143(3)(ii) and an appeal was filed. The Department's argument about correcting a mistake in the assessment order was rejected, as both parties proceeded under Section 143(3)(ii). Consequently, the Court set aside the Department's actions under Section 142(1) and related steps. The petition was allowed in W.P. No. 112 of 2005, with no costs awarded.
Issues involved: Whether the assessing officer can invoke Section 142(1) of the Income Tax Act, 1961 after an order under Section 143(3)(ii) by the appellate forumRs.
Analysis:
The petitioner filed a return for the assessment year 2002-03 and the assessing officer issued notices under various sections of the Income Tax Act, 1961. The assessment was completed under Section 143(3)(ii) on March 31, 2004, and the petitioner appealed this decision. During the appeal process, the assessing officer issued a notice under Section 142(1) of the Act, which the petitioner contested. The assessing officer threatened to impose penalties under Section 271(1)(b) post-appeal.
The Department argued that there was a mistake in the assessment order under Section 143(3)(i), not (ii), which they corrected under Section 292B, allowing them to invoke Section 142(1). However, both the assessing officer and the appellate forum proceeded under the assumption that the assessment was done under Section 143(3)(ii) for the relevant year.
The Court held that since the assessment was already completed under Section 143(3)(ii) before the notice under Section 142(1) was issued, it was impermissible for the assessing officer to reopen the assessment. The Department's argument about correcting a mistake was dismissed, as both parties proceeded on the basis of Section 143(3)(ii) for the assessment year. Consequently, the Court set aside the Department's actions under Section 142(1) and all related steps.
In conclusion, the petition was allowed, and no costs were awarded in W.P. No. 112 of 2005.
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