2016 (3) TMI 26

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....y the Income Tax Appellate Tribunal, Delhi Bench 'G' New Delhi (for brevity, "the Tribunal") in ITA No.2646/Del/2004 for the assessment year 1991-92, claiming following substantial questions of law:- i) Whether on the admitted factual position emerging from the material on record, the decision rendered by the Tribunal is a result of incorrect interpretation of the provisions of section 151 of the Income Tax Act, 1961? ii) Whether in view of the provisions of Section 151 of the Income Tax Act, 1961, the proceedings under section 148/147 could be initiated after a period of four years even in a case where assessment under section 143(1)(a) had been made without authority of law for the relevant assessment year by the Assessing Officer? iii) Whether on a correct interpretation of the provisions of Section 151(1) of the Income Tax Act, 1961, the Tribunal was justified in holding that proceedings initiated under Section 148/147 after a period of four years on an approval and sanction having been granted by the Additional Commissioner of Income Tax were valid? iv) Whether on the facts and in the circumstances of the case, the view taken by the ....

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....st be obtained. The CIT(A) vide order dated 19.3.2004, Annexure P.2, did not agree with the submissions of the assessee and held that processing of return under section 143(1)(a) of the Act was not an assessment. Aggrieved by the order, the assessee filed appeal before the Tribunal. Vide order dated 29.9.2004, Annexure P.1, the Tribunal dismissed the appeal. In ITA No.163 of 2005, the assessee filed an application under section 254(2) of the Act before the Tribunal for rectification of the order dated 29.9.2004 which was declined vide order dated 15.2.2005 in the said petition. Hence the instant appeals by the assessee. 4. We have heard learned counsel for the parties. 5. The primary contention of learned counsel for the appellantassessee was that in pursuance to first notice issued under Section 148 of the Act on 22.2.1994, the intimation which was sent to the assessee under Section 143(1)(a) of the Act was an assessment under Section 147 of the Act and therefore, the case of the assessee fell under Section 151(1) of the Act for which the satisfaction of the Chief Commissioner or Commissioner thereunder was mandatory for the issue of such a notice. It was urged that the same....

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....51(1) of the Act, it would emerge:- (a) if an assessment has been made under section 143(3) or section 147 and four years have not expired from the end of the relevant assessment year, a notice under section 148 has to be issued by the Assessing Office who is not below the rank of the Assistant CIT or the Deputy CIT but before issuing any such notice, the Joint CIT is to be satisfied on the reasons recorded by such Assessing Officer that it is a fit case for issue of such notice. (b) If, however, the period of four years has expired and the assessment order has been made under section 143(3) or section 147, the notice is to be issued only after the satisfaction has been recorded by either the Chief CIT or the CIT on the reasons recorded by the Assessing Officer aforesaid that it is a fit case for issue of such notice. Therefore, in other words, the Assessing Officer not below the rank of the Assistant CIT can issue a notice but before issuing the notice, the satisfaction of the CIT or the Chief CIT is necessarily to be obtained. 8. According to Section 151(2), no notice can be issued under Section 148 of the Act by an Assessing Officer who is below the rank of ....

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....on about the assessee having received commission income of Rs. 2 lacs from one CP Singh. The proceedings for reassessment commenced by the issue of the first notice could be completed only upto 31.3.1996 in view of the provisions of Section 153(2) prescribing time limit for completion of assessment or reassessment proceedings. As on 31.3.1996, the Assessing Officer could not proceed to assess or reassess assessee's income on the basis of the first return filed by the assessee on 19.3.1996. Therefore, it could not be said that any proceedings were pending before the Assessing Officer when the second notice was issued. The second notice issued under section 148 dated 17.3.1997 was therefore valid. 8. As far as the objection of the assessee regarding absence of consent under section 151(1) proviso is concerned, it cannot be said that there was any assessment done in the case of the assessee pursuant to the first notice under section 148. Only an intimation under section 143(1)(a) was issued. The decisions referred to by the learned CIT(A) on this issue clearly support the view that intimation under section 143(1)(a) is not assessment. Therefore, the provision of Section 1....

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....essee. The explanation that commission on sale of agricultural land was received as part of custom in the family cannot be believed as there is no credence in the explanation of the assessee. This amount is obviously payment over and above what is mentioned as sale price in the sale deed. However, the assessment has mentioned that commission was received by him in two years i.e. Rs. 55804/- on 31.3.1991 and Rs. 1,50,000/- on 22.7.1992. The AO may verify this fact and if it is indeed so, tax the amount of Rs. 2,00,000/- accordingly." 13. Before us, the learned counsel for the assessee reiterated submissions that were made before the CIT(A). Whatever be the nature of the money received by the assessee, the same was in the nature of income liable to tax. The CIT(A)'s direction to bring to tax this sum in the assessment year in which the assessee received these sums was proper and calls for no interference." 11. The findings recorded by the Tribunal are pure findings of fact which have not been shown to be illegal or perverse in any manner by the learned counsel for the appellant-assessee warranting interference by this Court. 12. Adverting to the judgments relied up....