Case Law Details
Brief of the Case
Supreme Court held In the case of ACIT vs. Rajesh Jhaveri Stock Brokers Pvt. Ltd. that Section 147 authorises and permits the Assessing Officer to assess or reassess income chargeable to tax if he has reason to believe that income for any assessment year has escaped assessment. So long as the ingredients of section 147 are fulfilled, the Assessing Officer is free to initiate proceeding under section 147 and failure to take steps under section 143(3) will not render the Assessing Officer powerless to initiate reassessment proceedings even when intimation under section 143(1) had been issued.
Facts of the Case
The assessee filed its return of income for AY 2001-02 on 30th October, 2001 declaring total loss of Rs.2,70,85,105/-. The said return was processed under Section 143(1) accepting the loss returned by the respondent. Notice under Section 148 was issued on the ground that claim of bad debts as expenditure was not acceptable. On 12th May, 2004 a return of income declaring the loss at the same figure, as declared in the original return, was filed by the assessee under protest. Copy of the reasons recorded was furnished by the AO on the assessee request in November; 2004.The AO raised various objections, both on jurisdiction and merits of the subject matter recorded in the reasons. On 4th February, 2005 the AO disposed of the objections holding that the initiation of reassessment proceedings was valid and he had jurisdiction to undertake such an exercise. It is in the aforesaid backdrop of facts that the impugned notice under Section 148 dated 12th May, 2004 was challenged by the assessee.
Contention of the Assessee
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