2023 (12) TMI 344

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....concern Assessment Years (AYs) 2011-12 [ITA 46/2020] and 2010-11 [ITA 47/2020], respectively. 3. Via the aforementioned appeals, the appellant/revenue seeks to assail a common order dated 03.09.2019 passed by the Income Tax Appellate Tribunal [in short, "Tribunal"]. 4. The Tribunal via the impugned order dated 03.09.2019 has quashed the reassessment proceedings triggered against the respondent/assessee under Section 148 of the Income Tax Act, 1961 [in short, "Act"]. 4.1 In reaching this conclusion, the Tribunal has taken recourse to the third proviso appended to Section 147 of the Act. 5. The appellant/revenue, being dissatisfied, has consequently lodged the above-captioned appeals. 6. To adjudicate the instant appeals, the f....

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....formation so received does prima facie indicate a case of escapement of income in the hands of the appellant. The AO may, using this information, consider if she has reason to believe that income of Rs. 4,95,00,000/- (for AY 10-11) has escaped assessment, and if so, may consider issuing notice u/s 148 for this assessment year to bring the amount to tax." In AY 2011-12, the addition made was Rs. 4,62,94,000/-. 6.5. This propelled the appellant/revenue to trigger reassessment proceedings against the respondent/assessee. Accordingly, a notice dated 29.03.2017 was issued qua the respondent/assessee under Section 148 of the Act. 6.6. Pending further progress of the reassessment proceedings, both the appellant/revenue as well as the resp....

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....ending before the Tribunal, it may have resulted in the reassessment proceedings being time-barred. 8. On the other hand, Mr C S Aggarwal, learned senior counsel, who appears on behalf of the respondent/assessee, has submitted that the third proviso appended to Section 147 squarely applied in the instant cases, and therefore, no interference is called for with the impugned order passed by the Tribunal. In support of his plea, Mr Aggarwal sought to place reliance on the following judgments: (i) Commissioner of Income Tax, New Delhi (Central) vs. Edward Keventer (Successors) P. Ltd. [1980] 123 ITR 200. (ii) Alcatel Lucent France vs. ADIT [2016] 69 taxmann.com 379 (Delhi). 9. We have heard learned counsel for the partie....

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....ce issued under sub-section (1) of section 142 or section 148 or to disclose fully and truly all material facts necessary for his assessment, for that assessment year: Provided further that nothing contained in the first proviso shall apply in a case where any income in relation to any asset (including financial interest in any entity) located outside India, chargeable to tax, has escaped assessment for any assessment year: Provided also that the Assessing Officer may assess or reassess such income, other than the income involving matters which are the subject matters of any appeal, reference or revision, which is chargeable to tax and has escaped assessment." [Emphasis is ours] 11. A careful perusal of the thi....