· Assessee filed its return of income on 14.12.1999 for the A.Y. under consideration, i.e. A.Y. 1999-00. The said return was processed u/s 143(1) of the Act.
· Thereafter, the AO issued notice u/s 148 of the Act on 25.01.2000. The AO passed an order u/s 144 read with section 147 of the Act, as the assessee neither filed its return in response to the said notice, nor attended the hearing.
· Thereafter, assessee filed an appeal before the CIT(A). However, the CIT(A) dismissed assessee’s appeal.
· Tribunal further upheld the reassessment proceedings holding that even if the time to issue notice u/s 143(2) of the Act had not expired, the AO cannot be deprived of his powers to reopen the matter u/s 147 of the Act.
· High Court was of the view that the issue of intimation does not bring to an end the assessment proceedings. The same comes to an end only when the time to issue notice u/s 143(2) of the Act expires / comes to an end.
· High Court further stated that the power of reopening an assessment can be exercised where assessment has either been completed u/s 143(3) and even where an intimation u/s 143(1) has been issued, provided the time period to take further proceeding by issuing notice u/s 143(2) of the Act has already expired.
· High Court further held that the power of reopening u/s 147 of the Act is not a power to be exercised to cut short the regular assessment proceedings. Thus, the High Court concluded that no notice u/s 148 of the Act can be issued till the period to issue notice u/s 143(2) of the Act has expired.
For further reading, refer the attachment.
Further Reading