Reassessment notice cannot bypass pending regular assessment when time to issue section 143(2) notice has not expired.

Reassessment under sections 147 and 148 cannot be used while regular assessment proceedings are still alive and the statutory period to issue notice under section 143(2) has not expired. An intimation under section 143(1)(i) does not conclude the assessment or foreclose completion under section 143(3), so income cannot yet be treated as escaped assessment for invoking reopening. Explanation 2(b) to section 147 does not apply where a regular assessment remains available. The reassessment notice was therefore invalid in these circumstances, and the issue was decided for the assessee.

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Issues: Whether a notice for reassessment under sections 147 and 148 of the Income-tax Act, 1961 could be issued when the time to issue notice under section 143(2) for completing the regular assessment under section 143(3) had not expired and only an intimation under section 143(1)(i) had been sent.

Analysis: An intimation under section 143(1)(i) is without prejudice to the power to issue notice under section 143(2), and the assessment proceedings remain pending until the period for issuing such notice expires. The power under sections 147 and 148 is to reopen a concluded assessment where income has escaped assessment, and it cannot be used to bypass or abort the regular assessment process while that process is still available. Explanation 2(b) to section 147 does not apply where an assessment can still be completed under section 143(3) because, in such a situation, it cannot be said that no assessment is possible.

Conclusion: Reassessment notice under sections 147 and 148 was not valid in these circumstances and the issue was answered in favour of the assessee.

Ratio Decidendi: Reassessment under sections 147 and 148 cannot be initiated while the regular assessment proceedings remain pending and the statutory time to issue notice under section 143(2) has not expired.

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