TaxTMI 
TaxTMI 
2018 (10) TMI 614
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....ibunal' for brevity) in ITA No.601/Mds/2003, for the assessment year 1993-94. 2.This Appeal has been admitted on 25.10.2005, on the following Substantial Question of Law: "Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in holding that the re-opening of the assessment under Section 147 of the Income Tax Act, 1961, and the completion of assessment without issue of notice under section 143(2) of the Income Tax Act, 1961, within 12 months, is valid?" 3.The respondent/assessee is no more and the Department had filed an application to bring on record the legal heirs, to whom notices have been ordered and inspite of notices having been served and their names printed in the....
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....section 143(2) after the expiry of twelve months specified in the proviso to section 143(2) as it stood immediately before the amendment of the said sub-section by the Finance Act, 2002, but before the expiry of the time-limit for making the assessment, reassessment or re-computation as specified in section 153(2), such notice shall be deemed to be valid notice. The second proviso to section 148(1) provides that where a return has been furnished during the period from October 1, 1991 to September 20, 2005 in response to a notice served under section 148 and, subsequently a notice has been served under section 143(2)(ii), but before the expiry of the time limit for making the assessment, reassessment or re-computation as specified i....
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....ensure that the assessee has not under-stated the income or has not computed excessive loss or has not underpaid the tax in any manner, under Section 143(2) of the Act, the Assessing Authority has to serve a notice on the assessee, requiring him either to attend his office or to produce or caused to be produced therein, on a date to be specified therein, such evidence that the assessee relies upon in support of the return. Proviso to sub section (2) of Section 143 of the Act states that a notice under the Section has to be served within a period of 12 months from the end of the month in which the return is furnished and any notice that has been served beyond the period of 12 months would make the entire proceedings herein, invalid and illeg....
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....he Act, where a return has been furnished during the period commencing on the 1st day of October, 1991 and ending on the 30th day of September, 2005, in response to a notice served under Section 148 of the Act and subsequently a notice has been served under Sub-Section (2) of Section 143 of the Act, but after the expiry of twelve months specified in the proviso to Sub Section (2) of Section 143, as it stood immediately before the amendment of said sub-section by the Finance Act, 2002 (20 of 2002), but before the expiry of the time limit for making the assessment, reassessment or recomputation as specified in Sub-Section (2) of Section 153 of the Act, every such notice issued is deemed to be a valid notice. The explanation appended therein p....
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....ce under Section 143(2), without reference on limitation, Section 148(1) proviso has relevance for returns filed from 1.10.1991 to 30.9.2005. On and after the 1st day of October, 2005, the procedure to be adopted thereon is given under Section 149 of the Act. " 7.The above legal position was laid down by the Hon'ble Division Bench, after taking note of the insertion of the proviso to Section 148 of the Act by Finance Act, 2006, with retrospective effect from 01.10.1991. Thus, on the date when the impugned order was passed by the Tribunal, i.e on 16.9.2003, the legal position was clearly in favour of the assessee, as the legal position as indicated in the decision in the case of C.Palaniappan is by considering the insertion of the pro....