INCOME TAX ACT, 1961

Section 147

Reassessment - Validity - Reassessment of issues other than issues being subject-matter of section 148 notice - Reasons for initiation of proceedings ceased to survive

Assessee filed return of income on 20-4-2012 declaring total income at Rs. 9 lakhs which was beyond time prescribed under section 139(4) and was treated non-est by AO. Thereafter AO issued notice under section 148 after recording reasons that income to the tune of Rs. 9 lakhs had escaped assessment. AO completed assessment under section 147/143(3) determining total income at Rs. 50 lakhs after considering the income declared in post-148 income-tax return and making various other additions. Assessee submitted that since assesse accepted income declared in return filed in response to notice issued under section 148, he could not have made other additions without issuing fresh notice under section 147. Held: Since AO initiated proceedings under section 147 for escapement of income of Rs. 9 lakhs which was the returned income filed prior to issuance of notice under section 148 in belated return and as well as in the return filed in response to notice under section 148 and since AO accepted said returned income and proceeded to make various other additions without issuing fresh notice under section 147/148, therefore, AO exceeded jurisdiction in reassessing issues other than the issues in respect of which proceedings were initiated and reasons for initiation of those proceedings ceased to survive. Therefore, various other additions made by AO were not in accordance with law being without jurisdiction.

REFERRED :

FAVOUR : in assessee's favour

A.Y. : 2010-11

INCOME TAX ACT, 1961

Section 27(1)(c)

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