TaxTMI 
TaxTMI 
2005 (2) TMI 477
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....that the assessee is a liquor contractor. Original returns filed on 30th Oct., 1995, wherein income of Rs. 24,87,820 was declared by the assessee, were processed under s. 143(1)(a) of the IT Act, 1961 (hereinafter referred to as "the Act" for short), on 10th Sept., 1996. Later on, after a lapse of considerable time a notice under s. 148, dt. 14th May, 1997, was issued. 3. The reasons for reopening of assessment under s. 147 of the IT Act are extracted below: "Reasons for reopening of assessment under s. 147 of the IT Act, 1961. Return of income for this year was filed on 30th Oct., 1995, declaring total income at Rs. 24,87,822 claiming a refund of Rs. 11,44,486. Return of income was processed under s. 143(1)(a) of the IT Act, 1961, on 10....
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....ar has escaped assessment. There was no escapement of income in this case. The AO had omitted to follow the criteria laid down by the CBDT circular to take up the case for scrutiny. He further observed that an omission of the AO cannot be regularised by resorting to the provisions of s. 147 of the IT Act. Consequently, the learned CIT(A) held the notice under s. 148 of the Act ab initio void. 5. The Department has challenged this finding of the learned CIT(A) whereby he annulled the impugned AO (sic-assessment) and thus refrained from deciding issues on merit. 6. The learned Departmental Representative, Shri D.R. Zala, has vehemently relied on the assessment order and has further submitted that the AO has wider power of reassessment under....
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....fund was less than Rs. 1,00,000. The AO wanted to scrutinise this case, so first resort to s. 154 of the Act was undertaken, whereby refund was Increased to bring it within the purview of Board's Circular No. 1917, dt. 3rd June, 1994. The reasons recorded speak about carrying out the scrutiny of the returns and not pointing out towards any specific escapement of income for assessment. 10. Having stated the facts as above, we would like to explain the scope of s. 147/148 of the IT Act. There should be clear reference of escapement of income for the issue of notice under s. 148. Where the notice is not based on valid reasons, it cannot be a ground for assuming jurisdiction under this provision. The amended provisions of s. 147/148 of the Ac....