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Income Tax Appellate Tribunal, ‘D’ BENCH, CHENNAI
Before: SHRI N.R.S. GANESAN & SHRI S. JAYARAMAN
आदेश /O R D E R
PER N.R.S. GANESAN, JUDICIAL MEMBER:
This appeal of the Revenue is directed against the order of the Commissioner of Income Tax (Appeals)-3, Madurai, dated 29.03.2017 and pertains to assessment year 2013-14. The assessee has filed cross-objection in respect of the same order of the CIT(Appeals).
No one appeared for the assessee even though the notice of hearing was received by the assessee by RPAD. Therefore, we heard the Ld. Departmental Representative and proceeded to dispose the appeal on merit.
There was a delay of 16 days in filing the cross-objection by the assessee. The assessee has filed a petition for condonation of delay. We have perused the affidavit filed by the assessee. We find that there was sufficient cause for not filing the cross-objection before the stipulated time. Therefore, we condone the delay and admit the cross-objection.
The only issue arises for consideration is with regard to reopening of assessment under Section 147 of the Income-tax Act, 1961 (in short 'the Act').
Smt. Ruby George, the Ld. Departmental Representative, submitted that the CIT(Appeals) set aside the reopening of assessment on the ground that the time limit for issuing notice under Section 143(2) of the Act has not expired. According to the Ld. D.R., there is no provision in the Income-tax Act which bars the Assessing Officer from issuing notice under Section 147 of the Act even though the time limit for issuing notice under Section 143(2) of the Act has not expired. Therefore, the CIT(Appeals) is not justified in allowing the claim of the assessee.
We have considered the submission of the Ld. D.R. and perused the relevant material available on record. Admittedly, the time limit for issuing notice under Section 143(2) of the Act has not expired. The question arises for consideration is when the time limit for issuing notice under Section 143(2) has not expired, can the Assessing Officer reopen the assessment on the ground that the income otherwise taxable escaped assessment? This Tribunal is of the considered opinion that in case the income has escaped from assessment, the Assessing Officer can very well issue notice under Section 143(2) of the Act and assess the income which escaped assessment. It is not necessary to initiate reassessment proceeding to reopen the assessment. The proceeding under Section 147 of the Act can be reopened only in case the assessment proceeding was completed or terminated by operation of law. In the case before us, the time limit for issuing notice under Section 143(2) of the Act has not expired, therefore, the Assessing Officer exceeded his jurisdiction in issuing notice under Section 147 of the Act. Therefore, this Tribunal do not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed.
The cross-objection filed by the assessee is only in support of the order of the CIT(Appeals), therefore, it becomes infructuous.
In the result, both the appeal of the Revenue and cross- objection filed by the assessee stand dismissed.