TaxTMI 
TaxTMI 
2023 (2) TMI 258
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....4,566/- under intimation u/s. 143(1) of the Act. The said total income was rectified by adding an amount of Rs.6,87,582/- being 50% share from the assessee's spouse income vide order u/s. 155 of the Act. In challenge before the CIT(A), it was contended an order under intimation u/s. 143(1) of the Act can be modified by scrutiny proceedings u/s. 143(3) of the Act, further, no notice was issued to the assessee in passing the order u/s. 155 of the Act. The CIT(A) agreed with the contention of assessee that the order passed u/s. 155 is technically incorrect, but however, confirmed the order of AO by observing that the AO has already taken corrective measure in passing an order u/s. 154 of the Act on 30-07- 2010 which is evident from pages 4 and 5 of the impugned order. 6. The ld. AR, Shri D. E. Robinson vehemently argued that the CIT(A) did not appreciate the non-issuance of any notice during the rectification proceedings and having acknowledging the order passed u/s. 155 of the Act is not valid, confirmed the order of AO which is not at all justified. 7. Further, he argued that the AO added an amount of Rs.6,87,582/- in the hands of the assessee taking into account the assessment pa....
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....d 21-03-2011. The time limit for completion of assessment is provided u/s. 153(1)(a) i.e. two years from the end of the assessment year in which the income was first assessable. The present assessment year is A.Y. 2009-10 i.e. 31-03-2010 and the time limit to complete assessment u/s. 143(3) or 144 of the Act is available up to 31-03-2012 i.e. after two years from the end of the assessment year in which the income was first assessable. The AO issued notice u/s. 148 of the Act on 18-02-2013 and the assessee in response to the said notice requested the AO to treat the original return filed as return filed u/s. 148 of the Act vide letter dated 07-03-2013 which is evident from page 2 of the assessment order. I note that the assessee challenged the validity of reopening proceedings before the CIT(A), the contentions of which are reproduced at page 5 of the impugned order. On perusal of the same, I note that the assessee primarily placed reliance on the decision of Hon'ble Supreme Court in the case of GKN Driveshafts (India) Ltd. Vs. DCIT reported as 259 ITR 19 and contended that reopening is bad under law. I note that the AO provided the copy of reasons recorded to the assessee vide lett....
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...., as discussed above, the AO by following the procedure contemplated u/s. 147 and 153 of the Act reopened the assessment concluded under intimation u/s. 143(1) of the Act and brought to tax in the hands of the assessee i.e. 50% share from the total income determined under scrutiny assessment proceedings in the case of assessee's spouse. Thus, the reopening of assessment made u/s. 143(3)/147 of the Act is valid and ground No. 1 raised by the assessee is dismissed. 13. Ground Nos. 2 and 3 raised by the assessee challenging the action of CIT(A) in confirming the addition made in the hands of the assessee in terms of operation of provisions u/s. 5A of the Act. 14. I note that a new provisions u/s. 5A of the Act has been inserted by Finance Act, 1994 with retrospective effect from 01-04-1963 and the present year under consideration is being A.Y. 2009-10, the said provisions u/s. 5A is applicable to the facts on hand. The said new section was incorporated for determination of the income of persons governed by the Portuguese Civil Code, 1860 residing in the State of Goa, Union territories of Dadra and Nagar Haveli and Daman and Diu. Admittedly, the assessee and her spouse governed by th....
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....an under the head "Salaries") shall be apportioned equally between the husband and the wife and the income so apportioned shall be included separately in the total income of the husband and of the wife respectively, and the remaining provisions of this Act shall apply accordingly. (2) Where the husband or, as the case may be, the wife governed by the aforesaid system of community of property has any income under the head "Salaries", such income shall be included in the total income of the spouse who has actually earned it. In light of sub-section1 to section SA, it is clear that the income of husband and wife cannot be assessed as communion of property but has to be equally apportioned between husband and wife and has to be separately included in the total income of the husband and wife. In the given case, an assessment order was passed in the case of spouse Shri Elton Gregory Vales u/s 143(3) for A.Yr.2009-10 on 27.03.2011 and additions were made to the total income which included disallowance of depreciation and addition to house property income. As appellant is covered by section 5A, any change in the total income of the spouse will cause consequential change to her total in....