Sec 142(1) and Sec 148 cannot operate concurrently: ITAT Dehradun
Uttrakhand Poorv Sainik Kalyan Nigam Ltd. Vs ITO (ITAT Dehradun); ITA No. 3129/Del/2018
- Assessee had filed its return of income for A.Y. 2014-15 belatedly under section 139(4) of Income-tax Act, 1961 on 06.10.2015.
- The Assessing Officer issued a notice under section 148 of the Act on 22.01.2015 itself which is prior to the date of filing of return of income by the assessee. Assessee had got time to file the return belatedly in terms of section 139(4) of the Act till 31.03.2016.
- The question is whether, Assessing Officer who is entitled as per the statute to issue notice under section 142(1) for calling the return of income from assessee, can directly proceed to reopen assessment U/S 148.
ITAT Dehradun held as under:
- Nothing prevented the Assessing Officer to select this return for scrutiny and frame the assessment in accordance with law. When this provision is available with the Assessing Officer then there is no need for him to issue notice under section 148 that too before the end of assessment year itself.
- Reopening of an assessment cannot be resorted to as an alternative for not selecting a case for scrutiny. There should be conscious formation of belief based on tangible information that income of an assessee had escaped assessment.
- Reassessment proceedings are to be quashed ab- initio.