TaxTMI 
TaxTMI 
2016 (6) TMI 551
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.... passed under section 250(6) of the Income Tax Act, 1961 (in short 'the Act) and the appeal of the assessee in ITA No. 1136/Chd/2011 is directed against the order of learned Commissioner of Income Tax (Appeals)-II, Ludhiana dated 14.9.2011 for assessment year 2002-03, challenging the action of the CIT (Appeals) in sustaining the levy of penalty under section 271(1)(c) of the Act. 2. We will first take up the cross appeals in ITA Nos. 523/Chd/2008 and ITA No. 621/Chd/2008. ITA No. 523/Chd/2008 (Assessee's appeal) : 3. In this case, though the assessee has raised a number of grounds, however, the legal issue is with regard to the issue of notice under section 148 of the Act instead of notice under section 143(2). Being a legal iss....
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....ee had filed its return of income as on 30.10.2002, which got revised as on 31.3.2004. The revised return was within the time limit. The time available with the Assessing Officer for issue of notice under section 143(2) was upto 31.3.2005 i.e. within twelve months from the end of the month in which the return was filed by the assessee. The Assessing Officer has issued notice under section 148 of the Act as on 28.5.2004, which was before the last date upto which she could have issued notice under section 143(2) of the Act. It was argued that once the Assessing Officer had time available with her to issue notice under section 143(2) of the Act, she is not authorized to issue notice under section 148 of the Act. Reliance was placed on Third Me....
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.... notice issued under sub-section (1) of section 142, discovers any omission or any wrong statement therein, he may furnish a revised return at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier : Provided that where the return relates to the previous year relevant to the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year, the reference to one year aforesaid shall be construed as a reference to two years from the end of the relevant assessment year.] 8. In said circumstances, we also observe that time available with the Assessing Officer for issuing notice under section 143(2) of the Act is up to 31.3.2005....
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....ances, the Assessing Officer could have voluntarily issued notice under section 148 of the Act or not. 11. We do not find the act of the Assessing Officer in issuing notice under section 148 of the Act, within the time limit available for issue of notice under section 143(2) of the Act being as per law. The Income Tax Act is a self contained Act, whereby provisions are made for different situations. Every section, sub-section, clause, proviso, Explanation, etc. are put in the Act at their respective places with some specific intention of the Legislature behind such placement. The provision of section 143(2) and Section 148 are placed on a totally different trajectories in the sense that notice under section 143(2) is issued in order to mak....
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....ys Software Technologies Ltd. (supra) is not out of place, whereby the Hon'ble Court, in the similar circumstances, allowed the appeal of the assessee, relying on another decision of the Madras High Court in the case of CIT Vs. K.M. Pachaiyappan (2008) 304 ITR 264 (Mad), wherein the Court has held that no reassessment proceedings could be initiated so long as the assessment proceedings pending on the basis of return already filed are not terminated. Respectfully following the above case, we hold that the notice issued under section 148 of the Act by the Assessing Officer in the present case is not as per law and the consequential order made is hereby quashed. 12. Since we have quashed the order of the Assessing Officer, we do not find ....