Case Law Details
DCIT Vs Anand Pershad Jaiswal (ITAT Delhi)
Conclusion: Subsequent amendment to section 149, by Finance Act, 2012 which extended limitation for initiation of reassessment proceedings to sixteen years could not be resorted for reopening concluded proceedings and the notice issued under Section 149 was time barred and thus could not have been acted upon. Consequently, the impugned re-assessment order passed in consequence of the illegal notice under Section 148 was a nullity and bad in law.
Held: Assessee was an individual and holding the status of Non-Resident Indian for the previous year relevant to Assessment Year 2000-01. Assessee filed return of income declaring total income at Rs.2610/-. Thereafter, AO received an information from FT&TR under exchange of information wherein it was found that assessee held foreign bank accounts in the name of Shri Anand Pershad Jaiswal and his father with the total credit entries amount to Rs.57,35,41,059/- for the Assessment Year 2000-01. Consequent upon information, AO issued notice under Section 148 r.w. Section 147 and reopened the assessment. The re-assessment order was passed on the basis of fresh material obtained concerning Assessment Year 2000-01. The additions were made towards credit entries reflected in the foreign bank accounts in the absence of any explanation thereof. Revenue contented that in view of Explanation inserted to S. 149 the extended time limit provided by clause (c) inserted by Finance Act 2012 would be automatically applied where income in relation to assets located outside India had found to be escaped regardless of other imputations. It was held that subsequent amendment to section 149, by Finance Act, 2012 which extended limitation for initiation of reassessment proceedings to sixteen years could not be resorted for reopening concluded proceedings in respect of which limitation had already expired/ lapsed before the amendment became effective. It was thus held that impugned reassessment notice and all consequent proceedings were without authority of law and a nullity and hence liable to be quashed and set aside. Consequently, the impugned re-assessment order passed in consequence of the illegal notice under Section 148 was a nullity and bad in law.
FULL TEXT OF THE ORDER OF ITAT DELHI
The present appeals are filed by the Revenue against the orders passed by CIT(A) for various assessment years mentioned hereinabove.
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