An income tax appeal against Tribunal holding that reassessment notices under Section 148 without Section 151 sanction were valid despite prior Section 143(3) assessment. Court allowed appeal, holding such proceedings impermissible.
Appeal allowed; reassessment proceedings held to be invalid for lack of Section 151 sanction.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH.
I.T.A. No.337 of 2005 (O&M) Date of decision: 19.1.2011
M/s Amrit Trading Company.
-----Appellant.
Vs.
Commissioner of Income Tax & another.
-----Respondents.
CORAM:- HON'BLE MR. JUSTICE ADARSH KUMAR GOEL HON'BLE MR. JUSTICE AJAY KUMAR MITTAL
Present:Mr. Akshay Bhan, Advocate and Mr. Animesh Sharma, Advocate for the appellant.
Mr. K.K. Mehta, Sr. Standing Counsel for the respondents. ---
ADARSH KUMAR GOEL, J.
I.T.A. No.337 of 2005
2
I.T.A. No.337 of 2005
3
151 of the Act was not required where earlier assessment was under Section 143(1)(a) of the Act. Accordingly, reassessment proceedings were restored. The appeal of the assessee in respect of the assessment years where assessment had been made under Section 143(1)(a) and not 143(3) of the Act were dismissed vide order dated 5.1.2011 being I.T.A. No.338 of 2005
M/s Amrit Trading Company v. Commissioner of Income Tax
(Appeals) & another and connected matters . However, the present case was separated.
that in the present case, assessment had already been made under Section 143(3) of the Act and reassessment was initiated without sanction under Section 151 of the Act, which was not permissible. The Tribunal itself upheld the view of the CIT(A) in cases where assessment was made under Section 143(3) of the Act and reassessment was initiated without following section 151 of the Act with the following observations:-
10............Therefore, in that view of the matter, by respectfully following the earlier order of the Tribunal dated 29.10.2004, we dismiss the departmental appeals on this issue in the aforesaid two cases by holding that notices under section 148 had been issued to the assessees in contravention of section 151.....”
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of the Act. The questions are answered accordingly.
The appeal is allowed.
(ADARSH KUMAR GOEL) JUDGE January 19, 2011 ( AJAY KUMAR MITTAL ) ashwani JUDGE
3 issues framed by the court
Whether initiation of reassessment proceedings under Section 148 without mandatory sanction under Section 151 is legally sustainable when prior assessment was under Section 143(3).
Whether the Tribunal was justified in upholding reassessment proceedings in violation of Section 151 of the Act.
Whether the action of authorities in ignoring mandatory sanction under Section 151 of the Act is legally sustainable.
4 provisions across 1 enactments
M/s Amrit Trading Company
Commissioner of Income Tax
another
Adash Kumar Goel
Ajay Kumar Mittal
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
