Director of Income Tax Vs Society For Worldwide Interbank Financial (Delhi High Court)
The Delhi High Court dismissed the Revenue’s appeal against the Income Tax Appellate Tribunal’s order dated 27.02.2009 concerning Assessment Year 1997-98. The only issue before the Court was the validity of the assessment proceedings. The assessee filed its return of income on 27.03.2000, while the assessment was completed on 31.03.2000. The Commissioner of Income Tax (Appeals) and the Tribunal had concurrently found that the notice under Section 143(2) of the Income Tax Act, 1961 was issued on 23.03.2000 and served on the assessee on 27.03.2000. Since the notice preceded the filing of the return, the lower appellate authorities held that it was invalid and consequently set aside the assessment.
Before the High Court, the Revenue contended that the date of 23.03.2000 mentioned in the notice was a mistake and that the notice was actually issued on 27.03.2000, the date on which the assessee filed its return. Reliance was also placed on Section 292B of the Income Tax Act. The Court examined the assessment order, the orders of the Commissioner (Appeals) and Tribunal, and the submissions of the Revenue.
The High Court noted that the Tribunal and Commissioner (Appeals) had recorded concurrent and clear findings that the notice under Section 143(2) was issued on 23.03.2000. The Revenue’s contention that the notice was actually issued on 27.03.2000 had not been raised before the lower appellate authorities and, therefore, could not be raised before the High Court for the first time.
