Smt. Mema Paul Vs ITO (Manipur High Court)
Manipur High Court held that non-communication of order of reassessment and demand notice within time lime prescribed under section 153(2) of the Income Tax Act cannot be treated as valid assessment. Accordingly, order quashed aside.
Facts- The petitioner filed a return of her income on 04-06-2004. The return was processed u/s. 143(1) on 14-12-2004. After about one year from the date of filing the return, the Income Tax Officer, holding that he had reasons to believe that the income chargeable to tax had escaped assessment issued notice un/s. 148 dated 28-07-2005 to the original petitioner. There is nothing on record to indicate as to when the said notice was received by the original petitioner.
Accordingly, AO assessed the total income of the assessee at Rs. 3,17,508 and raised a demand of Rs. 1,07,969/-. The notice of demand dated 28-12-2006, u/s. 156 was issued by AO, raising a demand of Rs. 1,07,969/-.
Thereafter, AO issued notice initiating penalty proceedings and confirmed imposition of penalty of Rs. 1,03,340/-. Being aggrieved, the present writ is filed.
Conclusion- Held that the proceeding of the reassessment of the Return submitted by the assesse for the Assessment Year, 2003-2004 shall be deemed to be completed only on 05-04-2007 when the assessment order was served/ communicated to the representative of the assesse and the same was not completed within the period prescribed under section 153(2) of the Act.
