TaxTMI 
TaxTMI 
2007 (8) TMI 488
X X X X Extracts X X X X
X X X X Extracts X X X X
....terials necessary for completing the assessment at the first instance itself. He stated that the assessment was completed under section 143(1) accepting the return filed by the assessee and intimation was made on 15-2-2002. He submitted that the only income of the assessee for the impugned assessment year was the leave and license receipt obtained from the residential flat owned by the assessee. He has stated that the only income credited in the Profit & Loss Account of the assessee-company is the rental amount of Rs. 18 lakhs. He has further stated that the only asset of the company is the flats and the air-conditioners and furnitures provided therein. The nature of the property was known to the Assessing Authority. All the particulars were furnished to him. It is the case of income from a single item of property. Therefore, once the assessment having been completed by accepting the return of income under section 143(1), there is no justification to go for an income escaping assessment only on the basis of a change of opinion. 4. The learned Counsel relied on the decision of the Madras High Court in the case of Bapalal & Co. Exports v. Jt. CIT (OSD) [2007] 289 ITR 37. The learn....
X X X X Extracts X X X X
X X X X Extracts X X X X
....8 in the light of an intimation under section 143(1), vis-á-vis, section 143(2) and (3). The Court has held that in a case where an intimation was made under section 143(1), it is possible for the Assessing Officer to proceed for an income escaping assessment even if there was no proceedings initiated under section 143. 8. In the present case, the argument of the assessee is not with reference to the power of the Assessing Authority to issue notice under section 148 in a case where there was no assessment under section 143(3) but only intimation under section 143(1). The issue raised by the assessee is regarding the ingredients of section 147, themselves. The question itself is whether action under section 147 was justified or not. The question is not linked with a proceedings concluded under section 143(1) or under section 143(3). But the Madras High Court in the case of Bapalal & Co. Exports (supra) has considered a case exactly similar to the present case. There also, the assessment completed under section 143(1). Thereafter no fresh material had come to the notice of the Assessing Authority. Notice under section 148 was issued in the absence of any new material. The C....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on to review his own order. That is why the Court has reiterated that section 147 of the Income-tax Act, does not postulate conferment of power upon the Assessing Officer to initiate reassessment proceedings upon a mere change of opinion. 13. The Ranchi Bench of the High Court of Patna in the case of Sheo Narain Jaiswal v. ITO [1989] 176 ITR 352 has held that for the purpose of initiating reassessment under section 147(a), the Assessing Authority should form his own belief on the materials available before him and it is not sufficient that he acts at the behest of any superior authority. If the above principle of self-satisfaction is not satisfied and the reopening was initiated under the direction of superior authority, the reopening of assessment would be bad for non-satisfaction of the condition precedent. 14. The Delhi High Court in the case of Jindal Photo Films Ltd. v. Dy. CIT [1998] 234 ITR 170 has held that where the Income-tax Officer attempts to reopen an assessment because the opinion formed earlier by him was in his opinion incorrect, the reopening could not be done. 15. The Gujarat High Court in the case of Garden Silk Mills (P.) Ltd. v. Dy. CIT [1999] 237 ITR....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he Tribunal has held that the income should be assessed as income from other sources. 22. The learned counsel further relied on our attention to the provisions of law contained in section 56(2)(iii) which reads as below :- "56(2)(iii): Where an assessee lets on hire machinery, plant or furniture belonging to him and also buildings, and the letting of the buildings is inseparable from the letting of the said machinery, plant or furniture, the income from such letting, if it is not chargeable to income-tax under the head 'Profits and gains of business or profession' shall be chargeable to income-tax under the head 'Income from other sources'." 23. Shri Bharat Bhushan, the learned Senior D.R., on the other hand, submitted that the case of the assessee is a pure and simple case of letting out of a furnished residential apartment. It is nothing but income from house property. The assessee has provided window air-conditioners. The assessee has provided furniture. These are all essential parts of a residential apartment. He, therefore, submitted that the revenue has treated the rental income rightly as income from house property. 24. We considered the matter in detail. The Ful....