2025 (11) TMI 1004

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....rrukhabad (hereinafter referred to as "ld. AO"). 2. Though the assessee has raised various grounds, I find that the preliminary legal ground raised by the assessee is that the impugned assessment ought to have been framed u/s 147 of the Act after reopening the assessment instead of assessment u/s 144 of the Act. This goes to the root of the matter and hence, I deem it fit to address the same first. 3. I have heard the rival submissions and perused the material available on record. During the period, the assessee deposited cash of Rs. 2,30,000/- in Bank Account No. 08280100020119 and Rs.11,00,000/- in A/c No. 08280400000468 maintained with Bank of Baroda, Allahaganj, Shahjahanpur. Notice u/s 142(1) stood issued to the assessee. In purs....

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....on 147 of the Act kicks in. Accordingly, in order to frame any assessment, the ld AO should have issued notice u/s 148 of the Act on the assessee in the manner known to law, then proceed to frame the reassessment u/s 143(3)/ 144 r.w.s. Section 147 of the Act. I find this issue was subject matter of adjudication by the coordinate bench of Hyderabad Tribunal in the case of Dr Vijay Kumar Datla Vs. ACIT reported in 1996 (3) TMI 176 dated 28.03.1996. The relevant operative portion of the said order is as under:- "In all these appeals, the assessment year involved in 1991-00. The returns for this year were to be feed voluntarily under section 139 of the income-tax Act, 1961 before the due dates varying between 30th June, 1991 and 21st O....

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....ice under section 142(1) is a substitution of the requirement under section 139(2), the time limit for its issuance in the assessment year is inbuilt. 3 ........................... 4 ........................... 5 .......................... 6 .......................... 7 .......................... 8. Explanation 2(a) to section 147 of the Income-tax Act includes non-filing of return in the expression "escaped assessment. The said Explanation reads "Explanation 2: For the purposes of this section, the following shall also be deemed to be cases where income chargeable to tax has escaped assessment, namely: (a) where no return of income has been furnished by the assessee al....

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....ovisions, it can be deduced therefrom. Section 139(4) reads as under "Any person who has not furnished a return within the time allowed to him under sub-section (1), or within the time allowed under a notice issued under sub-section (1) of section 142, may furnish the return for any previous year at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier" A reading of this provision gives an impression that the outer limit is one year from the end of the assessment year. Otherwise, the assessee's failure to submit the return under section 142(1) would not entitle him to file the return thereafter. Therefore, it has to be before....