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IN THE HIGH COURT AT CALCUTTA
Special Jurisdiction (Income Tax)
ITA No. 301 of 2005
TATA METALIKS LTD.
Vs.
C.I.T III, KOLKATA 
 
 BEFORE:
 The Hon'ble JUSTICE SOUMITRA PAL
 The Hon'ble JUSTICE ARINDAM SINHA
 Date : 22nd September, 2014 


Facts of the Case (in Brief)
- Assessee submitted that the return for the relevant assessment year was intimated to have been accepted under Section 143(1) of the Income Tax Act, 1961 on 8th August, 2000. 

- According to him, that was not completion of the assessment in relation to such return filed.

- The assessee sought to file a revised return on 31st March, 2001 which was within the time provided under Section 139(5) of the said Act.

- The Revenue did not accept the above contention of assessee and thereby treating the revised return as invalid return.



Arguments by Assessee -

Assesee submitted that intimation issued under Section 143(1) of the said Act cannot be said to be an assessment relying on the decision reported in the case of Assistant Commissioner of Income Tax versus Rajesh Jhaveri Stock Brokers(P) Ltd. : 291 ITR 500(SC), in particular paragraph 13 thereof. He submitted by that judgement it had been held assessment could not be said to have been completed on the issuance of intimation under Section 143(1) of the said Act. He also drew our attention to the judgment in Tarsem Kumar versus Income Tax Officer & Ors. : 256 CTR (P&H 116) rendered following the aforesaid judgment of the Hon’ble Supreme Court.



Arguments by Revenue -

Revenue submitted that by the intimation dated 8th August, 2000 the assessee was informed that its original return had been accepted. Refund as raised stood already issued as intimated and thereafter the Assessing Officer did not resort to seeking any further particulars or evidence from the assessee in resorting to the provision of 3 Section 143(2) of the said Act. In those circumstances, the assessment stood completed and accepted by the assessee who then had sought to file a revised return on the last day otherwise possible. According to Revenue, the said revised return was not accepted as it could not be in the facts and circumstances of the case. The Revenue relied on the decisions reported in 2002(3) SCC 496 (Haryana Financial Corporation and Anr Vs. Jagdamba Oil Mills and another) and 2006(1) SCC 275 (State of Orissa & Ors. Versus Md. Illiyas) to submit on the point of applicability of precedents in seeking to distinguish the judgment relied on by Assessee.



Held by High Court

We find the Hon’ble Supreme Court had considered the effect of Section 143 of the said Act in discussing its sub-sections as it had undergone change from time to time. The Tribunal had relied on the case of CIT Vs. Punjab National Bank (supra) in which also we find the discussion is the same regarding assessment as provided for under Section 143(1) of the said Act, that it could not be said to be assessment was complete on intimation issued.  Section 143(1)(i) of the said Act as it stood in the material time is set out below :

 “143.(1) Where a return has been made under section 139, or in  response to a notice under sub-section (1) of section 142,-  (i)If any tax or interest is found due on the basis of such return, after adjustment of any tax deducted at source, any advance tax  paid, any tax paid on self-assessment and any amount paid otherwise by way of tax or interest, then, without prejudice to the provisions of sub-section (2), an intimation shall be sent to the assessee specifying the sum so payable, and such intimation shall be deemed to be a noticed of demand issued under section 156 and all the provisions of this Act shall apply accordingly;” 

 

We notice the said provision contemplates an assessment without prejudice to the provisions of sub-section (2) of the said section whereunder the Assessing Officer shall, if he considers it necessary, serve on the assessee a notice requiring him, on a date to be specified therein, to attend his office or to produce or cause to be produced there, any evidence on which the assessee may rely in support of the return and after taking into account all relevant materials the Assessing Officer shall by an order in writing make an assessment. Thus we find, the provision for assessment to be made for the purpose of issuance of an intimation under section 143(1) of the said Act reserving the authority of the Assessing Officer to resort to the provisions under sub-section (2) thereof, cannot be said to be completion of assessment and, therefore, limit the time otherwise available to file revised return. We are fortified in our finding by the judgment in Rajesh Jhaveri (supra). 
 

In the circumstances and in view of the reasons aforesaid, we answer the question formulated in the negative, in favour of the assessee and against the Revenue. The appeal is allowed.


To download the full judgement click here



 

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Author:

TaxReply


Jan 18, 2015


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