2010 (7) TMI 626

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....tances of the case, the Income-tax Appellate Tribunal was right in law in quashing the assessment proceedings reopened under section 148 of the Act by holding that the proceedings under section 154 initiated against the assessee were pending, whereas, in fact, the notice under section 154 having been issued beyond the period of limitation under section 154(7) was non est and, hence, no proceeding under section 154 was pending ?   (ii) Whether the Income-tax Appellate Tribunal was justified in quashing the reassessment under section 147/148 for the assessment year 1995-96 even when proceedings under section 154 for the same year had become non est and which also find support from the decision of the hon'ble Allahabad High Court in th....

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.... proceedings and unless these proceedings are concluded, there cannot be any question of any income escaping the assessment. There is, thus, according to Shri Pal, no question of any income escaping the assessment. The very initiation of reassessment proceedings, on the facts of this case, is thus vitiated in law."   3. We have heard learned counsel for the parties.   4. Learned counsel for the Revenue submitted that there is no dispute with the proposition laid down by the hon'ble Supreme Court in Trustees of H. E. H. the Nizam's Supplemental Family Trust v. CIT [2000] 242 ITR 381 (SC) ; [2000] 159 CTR 114 that during the pendency of the assessment proceedings, reassessment notice could not be issued. He, however, urged tha....

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....mending any order passed under the Act by rectifying any mistake apparent on the face of the record. According to the aforesaid provision, no amendment under section 154 of the Act can be made in the assessment order after expiry of 4 years from the end of the financial year in which the order sought to be rectified was passed, except cases covered under section 155 or section 186(4) of the Act. Admittedly, the return, in the present case, was processed on September 18, 1996, which order was sought to be rectified. The Assessing Officer could validly initiate action and pass an order under section 154 of the Act prior to March 31, 2001. Notice under section 154 of the Act having been issued on January 23, 2002, was clearly barred by time an....