2015 (8) TMI 261

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....ection 147 of the Income-tax Act, 1961, is ab initio void, inasmuch as, having regard to the proviso to section 147 of the Income-tax Act, 1961, the Assessing Officer could not have resorted to the provisions of section 147 of the Income-tax Act, 1961, after the lapse of four years time from the end of the assessment year. 3. The assessment order passed under section 143(3) read with sec tion 147 of the Act, 1961, is ab initio void, inasmuch as, no notice under section 143(2) of the Income-tax Act, 1961, was issued prior to completion of the assessment. 4. The assessment order passed under section 143(3) read with section 147 of the Income-tax Act, 1961, is ab initio void, inasmuch as no notice can be issued under section 148 of the I....

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.... of the case, provisions of law and judicial pronouncements, the impugned addition of Rs. 9,71,65,547 is wholly wrong and unsustainable in law. 11. The appellant may please be awarded cost of appeal. 12. The appellant may please be permitted to raise any additional or alternative ground on or before the hearing of appeal." 2. The facts are that the assessee filed its return of income on October 31, 2002. No intimation was received, the Assessing Officer proceeded to reopen the assessment under section 148 on March 28, 2007 which was served on April 2, 2007 the Assessing Officer framed the assessment under section 143(3)/148 on December 31, 2007. The assessee filed appeal against this order and the Commissioner of Income-tax (Appeal....

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....verify the case for the applicability of section 41 i.e., cessation of liability or under any other provision of the Act with regard to the benefit of Rs. 12.73 crores in the hands of the assessee, the assessment is hereby reopened under section 147 of the Income-tax Act for the assessment year 2002-03 (assessment com pleted under section 143(1). Sd/- ITO 18(1)(4), Mumbai 28.03.2007" ". . . notice under section 148 of the Income-tax Act, 1961, was issued on March 23, 2009 after recording following reasons, Reasons for reopening assessment in the case of GKAK RATHI (HUF) for the assessment year 2002-03 In this case assessment was completed under section 143(3) read with section 147 of Rs. 9,73,64,727 as against returned ....

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.... year under consideration following the dictum of section 41(1). However, the assessee did not offer the income arising to him on cessation of the liability amount of Rs. 12,73,14,727 following the dictum of section 41(1) in his return of income filed for the assessment year 2002-03. Considering the above facts I have reason to believe that the income chargeable to tax to the extent of Rs. 12,73,14,727 has escaped the assessment for above assessment year (i.e., 2002-03) and therefore the approval of the hon'ble Commissioner is solicited to issue the notice under section 148. Sd./- xxx ITO 18(1)(4), Mumbai." 5. The authorised representative therefore submitted that first the Assessing Officer must demonstrate with evidence that ....