Law:

Section:

Section 148 of the Income-tax Act, 1961 - Income escaping assessment - Issue of notice for - Return filed by petitioner/assessee was processed by Assessing Officer under section 143(1)(a) without making any prima facie adjustment and an intimation to that effect was issued - Thereafter, Assessing Officer noticed that assessee had made a note in return that he had received non-compete fee from a company, which being a capital nature was not taxable, but there was no formation of any opinion with regard to that fee being taxable or non-taxable in assessment order passed - Assessing Officer being of view that amount of non-compete fees was taxable and same ought to have been included in total income of assessee, issued impugned notice for re-assessment under section 148 believing that income of assessee had escaped assessment within meaning of provisions of section 147 - Whether in liberalised and simplified tax-collection regime, mere acceptance and acknowledgement of return and issuance of refund cannot be elevated to status of regular assessment and formation of opinion about incident of tax on a particular claim or item mentioned in return of income, and in absence of any formation of opinion about taxability of non-compete fees, in facts of instant case, there could be no question of change of opinion - Held, yes - Whether in view clause (c) of Explanation 2 to section 147 even where an assessment is made, but income chargeable to tax has been under-assessed, it has to be deemed that such income has escaped assessment - Held, yes - Whether impugned notice issued by Assessing Officer proposing to re-assess income of petitioner was legal and valid - Held, yes FACTS The petitioner/assessee filed his regular return of income in the pre-scribed form, declaring therein his total income for the relevant assess-ment year, which was processed under section 143(1)(a) without making any prima facie adjustment. Intimation to that effect was issued under section 143(1). Therefore, the Assessing Officer noticed that the assessee had made a note in the return that he had received non-compete fee from 'P', which being a capital nature was not taxable but there was no…

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