2017 (8) TMI 650

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...., relating to the assessment years 1997-98 and 1998-99 respectively. 3. The petitioner is an assessee on the file of the respondent under the provisions of the Income Tax Act, 1961 (in short 'the Act'). The petitioner had entered into an agreement for sale dated 04.07.1996 with M/s.Shorelines Pvt. Ltd., agreeing to sell their agricultural lands located in Muttukadu Village, for a total sale consideration of Rs. 3,50,00,000/- (Rupees three crores and fifty laks only) and received a sum of Rs. 1,60,00,000/- (Rupees one crore and sixty laksh only) in the accounting year 1996-97 relevant to the assessment year 1997-98 and a sum of Rs. 1,90,00,000/- in the accounting year 1997-98 relevant to the assessment year 1998-99. 4. The retu....

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....ction 148 was served. 6. The petitioner's case is that the notice dated 25.01.2001 was served on 01.02.2001 and the last date for passing reassessment was 31.03.2002. While so, on 16.08.2002 for the very same assessment year 1997-98, the respondent issued notice under Section 148 of the Act proposing to reassess the income for the said year and requiring the petitioner to file a return of income within 30 days. The petitioner submitted replies on 03.09.2002 and 09.09.2002 for furnishing the basis for reopening and submitted that in the light of the first notice issued and the proceedings have been failed to be pursued as contemplated under Section 153(2) of the Act, in the absence of any further materials at the hands of the responde....

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....t was justified in issuing the impugned notices and the petitioner should file a return of income and participate in the assessment proceedings and if aggrieved, they could prefer an appeal as against the assessment. 10. After hearing the learned counsels for the parties and carefully perusing the materials placed on record as well as the Original file, it is seen that pursuant to the notice dated 25.01.2001 served on the assessee on 01.02.2001, the petitioner sought for reasons for reopening, which were furnished and the petitioner through their authorized representative appeared for hearing on 19.03.2001 and produced the books of accounts and case was heard and subsequently adjourned for furnishing further details. On the adjourned dat....

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....e a fresh notice on the basis of the same material in respect of the same item of income. However, in case some fresh material comes into the possession of Assessing Officer subsequently suggesting escapement of income under the same head or some other head, we see no fetters on his power to issue a fresh notice under Section 148. Needless to emphasise that all such subsequent notices have to conform to the parameters prescribed under the law including the provision regarding limitation." 12. Thus the Division Bench held that, if a notice is quashed after examining the material relied on by the Assessing Officer and after recording a finding that on the basis of such material the additional income cannot be said to have escaped assessmen....