Venkata Siva Reddy Nellore Vs ITO (ITAT Hyderabad)
Unless the return filed by the assessee is scrutinized by the assessing officer under section 143(3), we cannot come to the conclusion of any escapement, the assessing officer cannot initiate proceedings under section 147 when the time for issuance of notice 143(3) has not expired. Accordingly, we allow the first ground of the appeal of the assessee by holding that this reopening of assessment by issue of notice under section 148 dated 17-10-2007 is bad in law.
FULL TEXT OF THE ITAT JUDGMENT
This is an appeal by assessee against the order of the Commissioner (Appeals)-Tirupati, dated 30-3-2017, for the assessment year 2012-13.
2. The grounds raised by assessee are as under :–
“1. The learned Commissioner (Appeals) is not justified in rejecting the contention of the appellant that the very initiation of the proceedings under section 147 is not proper and not valid.
2. The learned Commissioner (Appeals) is not justified in rejecting the contention of the appellant that since the reason on which the proceedings under section 147 ceased to exist, the assessing officer is not justified in making additions on other issues.
3. The learned Commissioner (Appeals) is not justified in rejecting the contention of the appellant that the agricultural land includes the land and the kutcha houses/huts thereon, appurtenant to the agricultural lands and used for conducting agricultural operations, and therefore, the compensation received on such assets is not taxable.
4. The appellant reserves his right to add, amend, delete or substitute any ground or grounds during the course of hearing”.
3. Facts leading to the present appeal are that assessee is an individual and was doing small contract works for the last ten years. assessee filed his return of income for the assessment year 2012-13 on 26-7-2013 declaring an income of Rs. 2,09,110. Upon filing the return of income, the assessing officer initiated proceedings under section 147 on the reason of mismatch of turnovers and issued notice under section 148 on 12-12-2013. Assessment was completed on 31-3-2015 by the Income Tax Officer, Ward-1(1), Tirupati under section 143(3) read with section 147 of the Income Tax Act (Act) determining the total income at Rs. 13,40,580 by making the following two additions to the income returned :–
