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Section 147 of the Income-tax Act, 1961 - Income escaping assessment - General - Assessment year 1994-95 - Whether where no assessment has been made, there is no occasion for Assessing Officer to conclude that income has already escaped assessment so as to take action under section 147/148 - Held, yes CASES REFERRED TO CIT v. Kelvinator of India Ltd. [2002] 256 ITR 1/ 123 Taxman 433 (Delhi)(FB) [Para 5] and Trustees of H.E.H. The Nizam's Supplemental Family Trust v. CIT [2000] 242 ITR 381/109 Taxman 393 (SC). [Para 6]. J.R. Goel for the Appellant. Y.K. Kapur and Kaanan Kapur for the Respondent. ORDER 1. The revenue is aggrieved by an order dated 20-8-2004 passed by the Income-tax Appellate Tribunal in ITA No. 2042/Delhi/2000 relevant for the assessment year 1994-95. 2. The assessee had filed its return of income on 29-9-1994 declaring an income of Rs. 17,88,830. 3. Without processing the return, the Assessing Officer on 5-6-1996 recorded reasons for issuing a notice to the assessee for reassessment on the ground that the assessee has wrongly claimed excessive deduction under section 80-O of the Income-tax Act, 1961 and that income has escaped assessment. 4. Thereafter, on 11-6-1996 the return of income was processed by the Assessing Officer under section 143(1)(a) of the Act and on the same date notice was issued to the assessee under section 148 of the Act requiring it to file its return of income. 5. In CIT v. Kelvinator of India Ltd. [2002] 256 ITR 11 , a Full Bench of this Court observed that an order of assessment can be passed either in terms of sub-section (1) of section 143 or sub-section (3) of section 143 of the Act. Insofar as the present case is concerned, it is an admitted position that no assessment order was passed under section 143(3) of the Act and that the return of the assessee was processed under section 143(1) of the Act only on 11-6-1996. 6. In Trustees of H.E.H. The Nizam's Supplemental Family Trust v. CIT [2000] 242 ITR 3812, the Supreme Court observed : "It is settled law that unless the return of income already filed is disposed of, notice for reassessment under section 148 of the Income-tax Act, 1961, cannot be issued, i.e., no…

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