2012 (10) TMI 1027

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....as erred in upholding an order which is bad in law. ITA Nos. 522 2 & 523(Asr)/2011 2. That on the facts and in the circumstances of the case the ld. CIT(A) has erred in upholding the assumption of jurisdiction for reassessment. The notice issued u/s 148 was based on incorrect/wrong reasons and even the provisions of section 149 had been ignored and thus were bad in law. 3. That on the facts and in the circumstances of the case the ld. CIT(A) has erred in sustaining the addition of Rs. 78,927/-. The submissions made on the issue have not been appreciated. 4. That on the facts and in the circumstances of the case the ld. CIT(A) has erred in upholding the levy of interest u/s 234. Also there was no document served al....

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....ome for the A.Y. 2001-02 on 31.07.2001, which fact is evident at page 2 of the assessment order. Copy of reasons recorded by the AO for issuing notice u/s 148 is placed at page 6A of the paper book.. A perusal of the reasons recorded shows that interest income which is alleged to have escaped assessment is Rs. 78,927/-. Notice u/s 148 had been issued on 26.03.2008 which is more than five years after the end of the assessment year. The Ld. counsel for the assessee, Mr. Sandeep Vijh, further argued that as per provisions contained in section 149(1)(b), the notice u/s 148 of the Act cannot be issued for the relevant assessment, if four years but not more than six years, have elapsed from the end of the relevant assessment year unless the incom....

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....at page 6A of the paper book, which for the sake of clarity are reproduced as under: "As per information received from ADI (Inv.), Amritsar, Smt. Harniranjan Kaur, who is retired from Punjab Civil Medical Services in January 2002 as a doctor, has been maintaining Bank account with Standard Chartered Bank, The Mall, Amritsar. From the perusal of the bank account statements for the financial year 2000-01 relevant to the assessment year 2001-02 interest of Rs. 78927- was credited in her saving bank account. Smt. Harniranjan Kaur has not filed here income tax return for the assessment year 2001-02 and her income including salary and interest as above exceeded Rs. One lac during the period. I have, therefore, reasons to believe....

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.... is likely to amount to one lakh rupees or more for that year;" 7.3. As per section 149(1)(b) of the Act, no notice u/s 148 of the Act can be issued if four years, but not more than six years, have elapsed from the end of the relevant assessment year unless the income chargeable to tax which has escaped assessment amounts to or is likely to amount to one lakh rupees or more for that year. Whereas in the present case, the income chargeable to tax which has escaped assessment is Rs. 78,927/- and not Rs. 1 lakh or more for the relevant assessment year. The present assessment year is 2001-02 and four years had elapsed on 31.03.2006. Therefore, notice having been issued on 26.03.2008 comes under the limitation in section 149(1)(b) of the Act,....