HIGH COURT OF PUNJAB & HARYANA

Commissioner of Income-tax, Asr.

v.

OCM INDIA LTD.

ADARSH KUMAR GOEL AND RAJESH BINDAL, JJ.

IT APPEAL NO. 425 OF 2005

October 12, 2006

Section 143, read with section 147 of the Income-tax Act, 1961 - Assessment - Issue of notice - Assessment year 1992-93 - Whether limitation prescribed under proviso to section 143(2) is not applicable to re-assessment under section 147 - Held, yes

FACTS

The Assessing Officer completed, the assessment in case of the assessee on 25-1-1995. However, a notice under section 148 was issued on 18-5-2001 and the assessee filed its return in response to the said notice. The Assessing Officer issued notice under section 143(2) on 17-3-2003 and, thereafter, completed the assessment on 28-3-2003 under section 143(3), read with section 147. On appeal, the assessee contended that as per proviso to section 143(2)(ii), notice could not be served on the assessee after 12 months of the end of the month on which return was furnished and, therefore, the notice issued on 17-3-2003 was beyond time. The Commissioner (Appeals) rejected the assessee’s contention on the ground that the notice under section 147 having already issued within time, notice under section 143(2) was only to make the assessee aware of intention of making assessment after verification or scrutiny and such a notice was not governed by the limitation specified under section 143(2) but by limitation specified under section 147, read with section 153. On further appeal, the Tribunal set aside order of the Commissioner (Appeals) on the ground that notices issued under section 143(2) was beyond time.

On reference:

HELD

The bar contained in proviso to section 143(2) could not be invoked to the re-assessment under section 148 in view of amendment by
Finance Act 2006. [Para 6]