2003 (6) TMI 469

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....ssessee. Since the appeals involve a common issue they are being disposed of by the consolidated order for the sake of convenience. The common grievance of the revenue in these appeals is that the CIT(A) has erroneously cancelled the assessments passed by the Assessing Officer under section 143(3), read with section 147 of the Act in the case of the first two assessees and under section 144 r.w.s. 147 in the case of the third assessee. 2. The facts in brief are that the assessee are employed as Capital in Indian Airlines. In all these cases, the assessments were reopened under section 147 of the Act by issuing notices under section 148 of the Act, the details of which are as under : Name of the assessee Asstt. year Date of notic....

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....merits that the allowances, such as stay over allowance, entertainment allowance, mean allowance, light refreshment allowance and special travelling allowance, which are sought to be taxed as the income of the assessees, are not taxable in their hands as they are in the nature of reimbursement of the expenditure incurred by the assessees and as such they could not form part of the income. He accordingly completed the assessments by adding the allowances after allowing the permissible deduction. It may be mentioned here that in the case of the third assessee, viz., Capt. G.K. Kapoor, the assessments were completed under section 144 r.w.s. 147 of the Act as none appeared in response to the notice issued under section 143(2). 3. Aggrieved, ....

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....ubmitted that the notices issued in the month of March, 2001 were not during the pendency of the notices under section 148 of the Act issued earlier, because the limitation for completing the assessments thereon was expired after two years from the end of the financial year in which the notices were issued. Therefore, the CIT(A) was not justified in cancelling the assessments is not based on valid notices. The learned counsel for the assessees, on the other hand, relied on the orders of the CIT(A). He has also contended that the revenue's appeals are not maintainable for the reason that the disputed tax effected is less than Rs. 1.00 lacs. In this connection reliance was placed on the decision of the jurisdictional High Court in the case of....