TaxTMI 
TaxTMI 
2007 (6) TMI 143
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....w 147 is bad in law ?" 2. The facts leading to the above substantial question of law are as under : The assessee is a Company. The relevant assessment year is 1999-2000 and the corresponding accounting year ended on 31.03.1999. The Assessing Officer completed the assessment under Section 143(3) of the Income-tax Act ("Act" in short) on 27.03.2002. The assessee had disclosed all material facts necessary for the assessment and the Assessing Officer had considered the same and completed the assessment under Section 143(3) of the Act. Notice under Section 148 was issued on 28.07.2004 and served on the assessee on 03.08.2004. Later, the assessment was completed under Section 143(3) r/w Section 147 on 27.08.2004.&n....
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.... not possible in view of the provisions of Section 147 of the Act. Admittedly, the reassessment proceedings are initiated after a period of four years. The scope of the said proviso to Section 147 of the Act has been considered by this Court in the case of Commissioner of Income-tax Vs. Elgi Finance Ltd., [2006] 286 ITR 674 reported in, and the same reads as follows: "The law relating to the reassessment has undergone a change from April 1, 1989. The change was brought in by the Direct Tax Laws (Amendment) Act, 1987. Two sets of provisions were available under section 147 in clause (a) and clause (b). This distinction has now been taken away by the Amendment Act. Previously, the line of distinction was a limit....
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....to the time-limits provided for under section 149, the law has provided another limitation of four years under the proviso to section 147. As far as the above proviso to section 147 is concerned, the law prescribes a period of four years to initiate reassessment proceedings, unless the income alleged to have escaped assessment was made out as a result of failure on the part of the assessee to disclose fully and truly all material facts necessary for the assessment." 5. In the present case, the Tribunal had considered the above proviso to Section 147 of the Act and held as follows : "Even now, before us, the Revenue could not contend that the reassessment is framed on submission of new material or information. Admittedly, the r....