Case Law Details
Sahara India Power Corporation Limited Vs ACIT (ITAT Delhi)
ITAT Delhi held that as the original return was only processed u/s 143(1), AO can duly initiate re-opening of proceedings under section 147 of the Income Tax Act so as to bring the escaped income into tax.
Facts- The facts of the issue are that the assessee has challenged the proceedings under Section 147 of the Income Tax Act on various legal grounds, particularly the issue of notice under Section 148 even when the time limit for the proceedings under Section 143(3) of the IT Act had not expired.
In this regard, the submission of the assessee are that in this case the return of income was filed on 31.10.2005. The said return was processed under Section 143(1) of the Income Tax Act. Thereafter, on 02.02.2006 notice under Section 148 of the Income Tax Act was issued on the appellant.
As per the proviso to subsection (ii) of Section 143(2) AO had the power to issue a notice u/s. 143(2) of the Income Tax Act within a period of 12 months from the end of the month in which the return was furnished by the assessee. Since in this case the return was furnished on 31.10.2005 a notice under section 143(2) could have been validly issued by the Assessing Officer on the same return filed which was pending before him up to 31.10.2006. Instead of issuing a notice u/s. 143(2) AO had issued a notice u/s. 148 of the Income Tax Act. Therefore, there is no justification at all for initiation of the proceedings u/s. 147 of the Income Tax Act more particularly when the department had sufficient time available to make regular assessment of the appellant on the basis of return which was filed therefore, the notice issued u/s. 148 of the Income Tax Act is void ab-initio.
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