Case Law Details
Brief of the Case
ITAT Delhi held in the case of ITO vs. M/s. Neetee Clothing (P) Ltd. that CIT (A) has rightly observed that section 150(2) enacts the situation where the provisions for assessment pursuant to appeal u/s 150(1) will not be applicable. Provisions of section 150(1) shall not apply where the reassessment proceedings would have been barred by time even at the time when the order, which was the subject-matter of appeal, revision, etc., was passed. So, it is clear that if the issuing of a notice for assessment or reassessment for a particular assessment year had become time-barred at the time of the order, which was the subject-matter of the appeal, the provisions of section 150 (1) cannot be invoked for making an assessment or reassessment. Also the order of Hon’ble High Court was passed for AY 2003-04 and the year before us for consideration is AY 2002-03. Accordingly in view of the order of Hon’ble High Court which is not in respect of AY 2002-03; and also no proceeding is pending for the year under consideration; in the said factual scenario, the proceedings initiated u/s 147 for the AY 2002-03 are impermissible and, therefore, the AO is not empowered to reopen the same u/s 150(1), considering the restriction placed by section 150 (2).
Facts of the Case
In return of income for the year under consideration i.e. AY 2002-03, gross total income had been computed at Rs.1,47,16,979/-. Out of this total income, the assessee has claimed two deductions under chapter VIA as under:- U/s 80HHC of Rs.1,02,21,587/- and U/s 80-IA/B @ 30% of Rs. 44,95,392/- .The notice u/s 148 read with section 150 dated 15.03.2011 was issued to the assessee. In reply vide letter dated 24.03.2011, the assessee had submitted that no appeal had been preferred before any authority for the year under consideration i.e. AY 2002-03, therefore, no notice could be issued u/s 148 beyond the time limit mentioned in section 149 and submitted that as per section 149(1) (b) notice can be issued only within six years from the end of the assessment year, therefore, last date for the issue of notice was 31-03-2009 whereas notice was issued on 15.03.2011. It was submitted by the assessee that since the notice issued was not legally valid, since being time barred the proceedings for AY 2002-03 may be dropped.
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