2002 (11) TMI 323

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....eing passed. For the sake of convenience, we will first take up the appeals directed by the revenue. 2. The common grounds raised by the revenue in all the three appeals read as under : "On the facts and in the circumstances of the case, the ld. CIT(A) is not justified in quashing the assessment order under section 143(3) read with section 148 of the IT Act, 1961. The ld.CIT(A) was not justified in holding that first notice of hearing was issued beyond the prescribed limit of 12 months from the end of the month of filing the 'return' to be counted from 14-5-1997 a date of which so called letter stating that the returns filed originally should be treated as returns filed in compliance to notice under section 148, when in fact no suc....

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....in which he made the addition of differential amount of investment in the property declared by the assessee and estimated by the Distt. Valuation Officer, in different years. Aggrieved by the order of the AO, the appeal was filed. 5. Before the CIT(A), it was argued that the original returns for all the three years were filed alongwith audited accounts in which the cost of construction invested by the assessee was duly reflected. So the assumption of jurisdiction under section 148 was due to change of opinion. It is settled law that jurisdiction under section 148 cannot be assumed on mere change of opinion. It was also claimed that a reference under section 131(1)(d) could be made only if any proceedings in the case of the assessee were ....

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....he Act. The ld.DR stated that there is no evidences on record that the assessee has sent such reply to the AO. Thus, the computation of limitation period from the date of the assessee's letter was illegal. In his opinion, the return of income in response to notice under section 148 was never filed nor any letter from the assessee was ever received to the effect that the original return of income may be treated as return filed in response to notices under section 148 of the Act. On the other hand, ld.counsel of the assessee Shri B.K. Nema raised the preliminary objection to the effect that the appeals directed by the revenue were not maintainable. He stated that the tax effect involved in each of the three years was less than Rs. 1 lakh. All....