Law:

Section:

2007] 294 ITR 222 [2008] 171 TAXMAN 428 (CAL.) HIGH COURT OF CALCUTTA Anil Kumar Bhandari* v. Joint Commissioner of Income-tax MS. INDIRA BANERJEE, J. W.P. NO. 736 OF 2001 NOVEMBER 13, 2006 Section 147 of the Income-tax Act, 1961 - Income escaping assessment - Non-disclosure of primary facts - Assessment year 1994-95 - For assessment year 1994-95, Assessing Officer completed assessment by allowing deduction under section 80HHC - Subsequently, on 20-3-2001, he issued notice under section 148 on ground of wrong allowance of deduction under section 80HHC - In reasons shown in notice, Assessing Officer had not struck upon any new material not disclosed earlier - Whether impugned action against assessee was barred by limitation, such action not having been initiated within four years from end of relevant assessment year - Held, yes FACTS For the assessment year 1994-95, the Assessing Officer passed an assessment order by allowing deduction under section 80HHC as claimed by the assessee. Subsequently, the Assessing Officer issued a notice under section 148, dated 20-3-2001 on the ground that he had reason to believe that there was an under-assessment within the meaning of section 147 as deduction under section 80HHC for the assessment year 1994-95 was wrongly allowed. The assessee filed writ petition challenging the initiation of proceedings under section 147 and the consequential issuance of a notice dated 20-3-2001 under section 148, mainly on the ground that the action against him was barred by limitation. HELD Once an assessment is made under section 143(3), it may not be reopened after the expiry of four years from the end of the relevant assessment year, except in the circumstances specified in the proviso to section 147. [Para 14] However, once an assessment is reopened, it is incumbent upon the Assessing Officer to give notice under section 148 to the assessee. Assessment, reassessment and/or recomputation would have to be done upon giving notice. The issuance of a notice under section 148 is subject to the limitation prescribed by section 149. [Para 15] It appeared from reasons disclosed in notice under section 148 that the revenue had not struck upon any…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492