TaxTMI 
TaxTMI 
2009 (4) TMI 467
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....ing counsel appearing for the appellant-Revenue and senior counsel Sri Aravind P. Datar appearing for the respondent-assessee. 2. During the previous year, relevant for the assessment year 2000-01, the respondent-assessee received an income of Rs. 3.9 crores under a restric- tive covenant from a Japanese company which took over the business of an Indian company of which the respondent was the managing director. The assessee initially treated the receipt from the foreign company as his income and paid advance tax of Rs. 63,94,000. Later, the assessee remitted an amount of Rs. 5 lakhs towards self-assessed tax. The taxes so paid are in addition to the payment of tax deducted at source in the assessee's account that is Rs. 63,347. Ev....
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....tional ground so raised and considered the same and held that the Assessing Officer had not issued intimation to the assessee under section 143(1)(a) of the Act. The Tribunal further noticed that since the assessee had a claim for refund, the officer was bound to issue intimation under sec- tion 143(1)(ii) of the Act, which was not done in this case. According to the Tribunal, since there was no processing of return under section 143(1)(a) the officer was barred from making an income escaping assessment under section 147 of the Act. The Tribunal while deciding the case in favour of the assessee relied on the decision of the Supreme Court in CIT v. Ranchhod- das Karsondas [1959] 36 ITR 569 and that of the Special Bench of the Tribunal in Mot....
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....come escaping assessment under section 147 based on the amended provision, we extract hereunder section 147 after the amendment which is the pro- vision applicable to the relevant assessment year : "147. Income escaping assessment.-If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess or reassess such income and also any other income chargeable to tax which has escaped assessment and which comes to his notice subsequently in the course of the proceed- ings under this section, or recompute the loss or the depreciation allowance or any other allowance, as the case may be, for the assess- m....
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....; (b) where a return of income has been furnished by the assessee but no assessment has been made and it is noticed by the Assessing Officer that the assessee has understated the income or has claimed excessive loss, deduction, allowance or relief in the return ; where an assessment has been made, but- (c) where an assessment has been made, but- (i) income chargeable to tax has been underassessed ; or (ii) such income has been assessed at too low a rate ; or (iii) such income has been made the subject of excessive relief under this Act ; or (iv) excessive loss or depreciation allowance or any other allow- ance under this Act has been computed." 5. The counsel for the appe....