Case Law Details
Kailash Kanhaiyalal Gidwani Vs ACIT (ITAT Pune)
The issue under consideration is that whether the initiation of assessment proceedings and the consequential assessment order passed u/s 147 of the Act is valid or not?
In the present case, even though the original summary assessment was made u/s 143(1) of the Act and the period of four years from the end of the assessment year had not expired before issuing notice u/s 148 of the Act, still, the AO, having missed the opportunity of making assessment u/s 143(3) after issuing notice u/s 143(2) of the Act within the stipulated period, could have made assessment or reassessment u/s 147 only on the basis of the some reasons to believe about the escapement of income. Existence of reasons for escapement of income are sine qua non to embark upon the assessment or reassessment u/s 147 of the Act. Change or no change of opinion, as argued by the ld. DR, are the factors to be considered after fulfilling the jurisdictional condition of there being an escapement of income, in the absence of which no assessment or reassessment can be made u/s 147. As it is apparent from the above discussion that no valid reasons exist about the escapement of the assessee’s income, ITAT hold that the AO was not justified in taking recourse to the provisions of section 147 of the Act. ITAT, therefore, strike down the initiation of assessment proceedings and the consequential assessment order passed u/s 147 of the Act and also the impugned order.
FULL TEXT OF THE ITAT JUDGEMENT
This appeal by the assessee is directed against the order dated 31-01-2014 passed by the Commissioner of Income-tax (Appeals), Kolhapur in relation to the assessment year 2009-10.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
