2007 (2) TMI 212

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....04 passed by the Income Tax Appellate Tribunal in ITA No. 2042/Del/2000 relevant for the Assessment Year 1994-1995. 2. The Assessee had filed its return of income on 29th September, 1994 declaring an income of Rs. 17,88,830/-. 3. Without processing the return, the Assessing Officer on 5th June, 1996 recorded reasons for issuing a notice to the Assessee for reassessment on the ground that the Ass....

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....urn of the Assessee was processed under Section 143(1) of the Act only on 11th June, 1996. 6. In Trustees of H.E.H the Nizam's Supplemental Family Trust v. Commissioner of Income Tax, (2000) 242 ITR 381, the Supreme Court observed (headnote) : "It is settled law that unless the return of income already filed is disposed of, notice for reassessment under Section 148 of the Income Tax Act, 1961, c....

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....er was of the view that income had escaped assessment, the Assessing Officer had no option but to resort to clause (b) of Explanation 2 to Section 147 of the Act for initiating reassessment proceedings. This clause reads as follows:- "Section 147 xxx xxx xxx Explanation1.- xxx xxx xxx Explanation 2.- For the purposes of this section, the following shall also be deemed to be cases where income c....

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....in view of the decisions that we have mentioned above, for the purposes of initiating reassessment proceedings, the Assessing Officer could not have made up his mind that the income of the Assessee has escaped assessment while a valid return was still pending before him. If the Assessing Officer had allowed the time to elapse for taking action under Section 143(2) of the Act, it was entirely his o....