TaxTMI 
TaxTMI 
2010 (10) TMI 864
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.... under s. 153(3)(ii) r/w s.254 of the IT Act and added an amount of Rs. 50,55,822 on account of transport subsidy by observing that "subsequent to the order of the Hon'ble Tribunal 'C' Bench, Kolkata in respect of ITA No. 1149/Kol/2006, pronounced on 13th April, 2007 relating to the asst. yr. 1997-98 read together with another order of the Hon'ble Tribunal 'A' Bench, Kolkata, dt. 25th Sept., 2005, in respect of the same assessee on a similar point, for the asst. yr. 2001-02, the income of the assessee-company is hereby recomputed/reassessed for the asst. yr. 1998-99 adding the said amount of transport subsidy amounting to Rs. 50,55,822 (being the claim admitted by the Darjeeling Gorkha Hill Council out of the total claim of Rs. 77,80,596) a....
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....ments in respect of escaped incomes. It only lifts the ban of limitation to give effect to orders that may be made by the appellate, revisional or reviewing authority within the scope of its jurisdiction. Sec. 150 is not an independent section entailing upon the AO any jurisdictional powers of assessment. All the powers of reassessment are solely conferred by the s. 147 of the Act r/w s. 148 of the Act. He further relied on several case law in support of his submissions. However, the learned CIT(A) confirmed the action of the AO by observing as under : "I have carefully considered the submissions of the learned Authorised Representative and also perused the assessment order. Regarding the various objections raised by the learned Authoris....
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....be one made in consequence of or to give effect to, any finding or direction by the authority hearing the case. So, in this case the learned AO has just sought to give effect to the 'deemed' finding or direction of the order of the Tribunal. With regard to the assessee's insistence that reassessing or recomputing was possible only under s. 147 of the Act, it is pertinent to refer to the case of M.K. Thakker v. CIT [1992] 197 ITR 110 (Kar.) in which the Hon'ble Karnataka High Court, in a case involving income pertaining to a different assessment year where the AO sought to bring to tax such income by invoking s. 147, observed that the purported exercise of the power under s. 147(b) by the AO was clearly erroneous. While arriving at this deci....
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....ter, to make assessment in the assessee's case by applying s. 150 of the Act read with s. 153(3) of the Act, however without the issuance of the notice under s. 148. In reply to the above letter issued by the learned AO a detailed submission was filed before the AO by the assessee vide its letter dt. 23rd June, 2008, enclosed at pp. 25-32 of the paper book, explaining therein that the said s. 150(1) of the Act did not apply in the case of the assessee. It was duly explained in the said letter and the same is again reiterated in this submission before your Honours that the assessment under s. 150(1) in the case of the assessee is invalid inasmuch as no notice under s. 148 was served on the assessee and also inasmuch as any initiation of any ....
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....ed AO. Further the learned AO also realized that the reassessment proceedings under s. 147 of the Act r/w s. 150(1) of the Act had become time-barred Thus, vide his second letter dt. 29th July, 2009, proposed to make the reassessment this time, not under s. 150 but under s. 153(3)(ii) r/w Explanation 2 thereon. 5.4 The learned counsel further contended that the learned CIT(A) in upholding the erroneous action of the AO, relied on the two cases (i) M.K. Thakker v. CIT [1992] 197 ITR 110 (Kar.) and (ii) Indian & Eastern Newspaper Society v. CIT [1979] 119 ITR 996/2 Taxman 197 (SC). However, the said case law support the assessee's case in as much as in the case of M.K. Thakker (supra) it was held that "while considering an appeal in respec....
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....eeding under any other law. Sec. 153(3)(ii) : Where the assessment, reassessment or recomputation is made on the assessee or any person in consequence of or to give effect to any finding or direction contained in an order under ss. 250, 254, 260, 262, 263, or 264 or in an order of any Court in a proceeding otherwise than by way of appeal or reference under this Act; Explanation 2 to s. 153 : Where, by an order referred to in cl. (ii) of sub-s. (3), any income is excluded from the total income of the assessee for an assessment year, then, an assessment of such income for another assessment year shall, for the purposes of s. 150 and this section, be deemed to be one made in consequence of or to give effect of any finding or direction co....