TaxTMI 
TaxTMI 
2010 (6) TMI 622
X X X X Extracts X X X X
X X X X Extracts X X X X
....ing the course of hearing, the learned counsel filed petition for admission of additional grounds challenging the reopening of the assessment under section 147 of the IT Act and consequent finalizing of assessment as per order under section 144 read with section 147 dt. 27th Dec, 2007 of the Act. It is contended that the assessee had filed return of income on 31st Oct., 2005 in the status of individual declaring income of Rs. 1,88,090, which was duly processed under section 143(1) the Act. The AO issued notice under section 148 of the Act on 4th July, 2006. According to the assessee, the time-limit for issuing notice under section 143(2) was available upto 31st Oct. 2006 and the initiation of reassessment proceedings by issuing of notice un....
X X X X Extracts X X X X
X X X X Extracts X X X X
....was raised by the assessee/his counsel on this issue of action initiated under section 147 of the IT Act." The learned Departmental Representative relied on the following decisions : (1) CIT v. Tollaram Hassomal [2008] 298 ITR 22 (MP); (2) ITO v. Vinod Kumar Sachdeva [2009] 29 SOT 65 (Jodh.) (URO); (3) Sunil Kumar Pugalia (HUF) v. ITO [2009] 120 TTJ (Jd.) 1001; (4) Ellora Traders Ltd. v. Dy. CIT [IT Appeal No. 104 (Luck.) of 2003 dated 11-4-2008]; (5) Kailash Auto Finance Ltd. v. Asstt. CIT [2009] 32 SOT 80 (Luck.) 5. We have considered the issue in view of the material placed on record, orders of the lower authorities and the following decisions cited by the learned counsel : 1. CIT v. K.M. Pachayappan [2008] 304 ITR 2....
X X X X Extracts X X X X
X X X X Extracts X X X X
....edings. We are however of the considered opinion that the issue regarding validity of assessment for the reason of issuing of notice under section 148 of the Act when the time-limit for issuing notice under section 143(2) of the Act was available to the AO, is a pure question of law and no investigation of facts is required for deciding this issue. The decision of the Hon'ble Madhya Pradesh High Court in the case of Tollaram Hassomal (supra) as also other decisions relied upon by the learned Departmental Representative are of no help to the Revenue because there the issue was required to be examined by the learned CIT(A) in the light of the additional ground taken by the assessee and he was required to record a finding of fact. In this case....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the Third Member decision takes precedence over the decision of the Division Bench. Since the Third Member decision in the case of Super Spg. Mills Ltd. (supra) squarely supports the case of the assessee, the submissions of the learned Departmental Representative are rejected and the additional grounds of appeal raised by the assessee challenging the validity of assessment by issuing notice under section 147 of the Act on 4th July, 2006 during the availability of time-limit for issuing notice under section 143(2) of the Act, is allowed. 6. Since the notice under section 147 of the Act dt. 4th July, 2006 is held to be not valid, consequent assessment proceedings dt. 27th Dec. 2007 under section 144 read with section 147 of the Act are al....