Medapati Venkayamma, V. THE DCIT, CIRCLE-1, Rajahmundry

ITA 252/VIZ/2013

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 6776 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 4 year(s) 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2008-2009
• Appeal Filed On: 18-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D J P ANAND
• Keywords: Opportunity of being heard; Period of limitation; Revised return; Reason to believe; Reassessment proceedings
• Section: 143(3); 142(1); 147; 148; 144; 139

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . . , BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , ACCOUNTANT MEMBER . / I . T .A.NO. 2 52 /VIZAG/ 201 3 ( / ASSESSMENT YEAR: 20 0 8 - 0 9 ) MEDAPATI VENKAYAMMA W/O SRI BHASKARA RAO SIVALAYAM STREET UBALANKA, RAVULAPALEM MANDALAM E.G. DT. [PAN : BKSPM4895G ] INCOME TAX OFFICER WARD - 2 AMALAPURAM ( / APPELLANT) ( / RESPONDENT) / APPELLANT BY : SHRI G.V.N.HARI, AR / RESPONDENT BY : SHRI D . J . P . ANAND , D R / DATE OF H EARING : 11 .0 8 .2017 / DATE OF P RONOUNCEMENT : 18 . 0 8 . 2017 / O R D E R PER D.S. SUNDER SINGH , ACCOUNTANT MEMBER : TH IS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE C OMMISSIONER OF INCOME TAX ( APPEALS ), [CIT(A)] - 11 , MUMBAI HOLDING CONCURRENT JURISDICTION OF CIT(A), VISAKHAPATNAM VIDE ITA NO.CIT(A) - 2 ITA NO. 252 /VIZ/201 3 MEDAPATI VENKAYAMMA, UBALANKA 1 1 /M/IT - 649/2011 - 12 DATED 26 . 0 2 .201 3 FOR THE ASSESSMENT YEAR 2008 - 09. 2. THE ASSESSEEE FILED APPEAL WITH FIVE GROUNDS ON MERITS ALONG WITH APPEAL MEMO IN FORM NO.36. SUBSEQUENTLY THE ASSESSEE FILED ADDITIONAL GROUND STATING THAT THE ORDER PASSED U/S 143(3) ON 29.12.2011 IS BARRED BY LIMITATION. IN THIS CASE, THE ASSESSEE HAS NOT FILED RETURN OF INCOME , HENCE , THE ASSESSING OFFICER ISSUED NOTICE U/S 142(1) ON 29.01.2010 AND THE SAME WAS SERVED ON ASSESSEE ON 15.02.2010. AS PER THE NOTICE ISSUED U/S 142(1) THE ASSESSEE HAS TO FILE RETURN OF INCOME BEFORE THE DUE DATE MENTIONED IN THE NOTICE, BUT THE ASSESSEE CHOOSE NOT TO FILE THE RETURN OF INCOME. THE ASSESSING OFFICER ISSUED NOTICE U/S 148 ON 16.11.2010 WHICH WAS SERVED ON THE ASSESSEE ON 22.11.2010. IN RESPONSE TO THE NOTICE ISSUED U/S 148, THE ASSESSEE FILED RETURN OF INCO ME ON 09.03.2011 DECLARING TOTAL INCOME OF RS.NIL AND AGRICULTURAL INCOME OF RS.40,000/ - . THE ASSESSING OFFICER ISSUED NOTICE U/S 143(2) AND WAS SERVED ON THE ASSESSEE ON 30.05.2011. THE ASSESSING OFFICER CONCLUDED THE ASSESSMENT ON TOTAL INCOME OF RS.51 ,01,400/ - U/S 143(3) OF I.T.ACT . THE ASSESSEE FILED APPEAL AGAINST 3 ITA NO. 252 /VIZ/201 3 MEDAPATI VENKAYAMMA, UBALANKA THE ORDER OF THE AO AND THE LD.CIT(A) CONFIRMED THE ASSESSMENT ORDER OF THE ASSESSING OFFICER AND DISMISSED THE APPEAL OF THE ASSESSEE. THE LD.CIT(A) DISMISSED THE TECHNICAL GROUND IN REL ATION TO ISSUE OF NOTICE U/S 147 IN PARA 4.3 WHICH READS AS UNDER : 4.3. I HAVE CAREFULLY CONSIDERED THE FACTS OF THE CASE, THE SUBMISSIONS OF THE APPELLANT AND ASSESSMENT ORDER. IN VIEW OF THE FACTS ON RECORD, IT IS NOTICED THAT THE ASSESSEE DID NOT FILE ITS RETURN OF INCOME SUO - MOTO. IN SPITE OF SEVERAL REMINDERS BY THE AO, THE ASSESSEE WAS NOT FILING ITS RETURN OF INCOME. THE CONDUCT OF THE ASSESSEE CLEARLY SHOWS THAT HAD THE AO HAS NOT INITIATED THE REASSESSMENT PROCEEDING, THE ASSESSEE WOULD HAV E EVADED THE TAX THAT IT WAS SUPPOSED TO PAY AND THEREFORE, THE ACTION OF THE AO IN TAKING RECOURSE TO SECTION 147 IS UPHELD AND CLAIM OF THE APPELLANT IS DISMISSED. GROUND NO.1&2 IS DISMISSED. 3. APPEARING FOR THE ASSESSEE, LD.AR ARGUED THAT IN THIS CASE, NOTICE U/S 142(1) WAS ISSUED BY THE ASSESSING OFFICER ON 29.01.2010 DIRECTING THE ASSESSEE TO FURNISH THE RETURN OF INCOME. THOUGH THE ASSESSEE HAS NOT FILED RETURN OF INCOME RESPONSE TO NOTICE U/S 142(1), THE ASSESSING OFFICER HAD INITIATED THE ASS ESSMENT PROCEEDINGS BY ISSUE OF NOTICE U/S 142(1) AND HAS TO COMPLETE THE ASSESSMENT U/S 14 4 BY ISSUE OF SHOW CAUSE NOTICE BEFORE 31.03.2011 . THERE IS PROCEDURE LAID DOWN IN THE ACT FOR COMPLETION OF THE BEST JUDGEMENT ASSESSMENT U/S 14 4 IN CASE OF NON COOPERATIVE ASSESSEE. THEREFORE, THE ASSESSING OFFICER IS DUTY BOUND TO COMPLETE THE ASSESSMENT WITHIN THE TIME ALLOWED UNDER 4 ITA NO. 252 /VIZ/201 3 MEDAPATI VENKAYAMMA, UBALANKA THE ACT FOR COMPLETING THE ASSESSMENT. BY ISSUE OF NOTICE CALLING FOR THE RETURN OF INCOME U/S 14 2 (1), THE ASSESSI NG OFFICER HAS INITIATED THE ASSESSMENT PROCEEDINGS AND DURING THE CONTINUATION OF THE PROCEEDINGS U/S 142(1), THE ASSESSING OFFICER CANNOT ISSUE NOTICE U/S 148 CALLING FOR THE RETURN OF INCOME WHICH IS NOTHING BUT INITIATI ON OF PARALLEL INCOME TAX PROCEED INGS UNDER TWO DIFFERENT SECTIONS FOR THE SAME SOURCE OF INCOME FOR THE SAME ASSESSMENT YEAR AND THE SAME IS NOT PERMITTED BY LAW. AS PER THE LAW LAID DOWN UNDER INCOME TAX ACT, THE ASSESSING OFFICER IS ALLOWE D TO CALL FOR THE RETURN OF INCOME AND OTHER R ELEVANT INFORMATION FOR COMPLETING THE ASSESSMENT U/S 142(1) OF THE ACT. IF THE ASSESSEE FILES RETURN OF INCOME, THE SCRUTINY ASSESSMENT PROCEEDINGS WOULD COMMENCE BY ISSUE OF NOTICE U/S 143(2) A ND IN CASE OF NON FURNISHING THE RETURN OF INCOME, THE ASSES SING OFFICER SHOULD RESORT TO BEST JUDGEMENT ASSESSMENT U/S 144 BY ISSUE OF A SHOW CAUSE LETTER FOR MAKING EX - PARTE ASSESSMENT AS PER THE INFORMATION AVAILABLE WITH THE ASSESSING OFFICER . LD.AR FURTHER ARGUED THAT WHEN THE ASSESSMENT PROCEEDINGS ARE ALREAD Y INITIATED BY ISSUE OF NOTICE U/S 14 2 (1) AND CALLED FOR THE RETURN OF INCOME , NO NOTICE U/S 148 IS REQUIRED. ONCE THE NOTICE U/S 14 2(1) IS ISSUED, THE ASSESSMENT IS REQUIRED TO BE COMPLETED WITHIN 5 ITA NO. 252 /VIZ/201 3 MEDAPATI VENKAYAMMA, UBALANKA THE TIME LIMIT ALLOWED U/S 143(3) OR 144. IN THIS CASE, THE ASSESSMENT INVOLVED WA S OF ASSESSMENT YEAR 2008 - 09 AND THE NOTICE WAS ISSUED ON 29.01.2010. THEREFORE, THE TIME LIMIT FOR COMPLETION OF ASSESSMENT WAS EXPIRED ON 31.03.2011. DURING THE PENDENCY OF ASSESSMENT PROCEEDINGS, T HE ASSESSING OFFICER ISSUED NOTICE U/S 148 ON 16.11.2010 FOR REOPENING THE ASSESSMENT WHICH IS BAD IN LAW AND HAS TO BE TREATED AS INVALID . WHEN THE ASSESSMENT PROCEEDINGS ARE ALREADY PENDING, THE NOTICE ISSUED U/S 148 IS INVALID AND THE ASSESSMENT ORDER PASSED U/S 143(3) IS BARRED BY LIMITATION. 4. ON THE OTHER HAND, THE LD.DR ARGUED THAT THE ASSESSING OFFICER HAS ISSUED NOTICE U/S 14 2 (1) CALLING FOR THE RETURN OF INCOME FOR THE A.Y.2008 - 09 ON 29.01.2010 AND THE ASSESSEE FAILED TO FURNISH THE RETURN O F INCOME BY 25.02.201 0 THE DUE DATE GIVEN IN THE NOTICE . SINCE THE ASSESSEE DID NOT CHOOSE TO FILE THE RETURN OF INCOME WITHIN ONE YEAR FROM THE END OF THE RELEVANT ASSESSMENT YEAR, OR BEFORE THE DUE DATE MENTIONED IN THE NOTICE U/S 142(1) THE PROCEEDINGS INITIATED U/S 142(1) WERE DEEMED TO HAVE BEEN CONCLUDED AND HENCE , THE ASSESSING OFFICER HAS INITIATED PROCEEDINGS U/S 147 OF THE I.T.ACT WHICH IS VALID. T HE 6 ITA NO. 252 /VIZ/201 3 MEDAPATI VENKAYAMMA, UBALANKA LD.DR CONTENDED THAT THERE IS NOTHING WRONG IN ISSUE OF NOTICE U/S 148 AND THE ASSESSMENT ORDER PASSED BY THE ASSESSING OFF ICER IS VALID. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL PLACED ON RECORD. THE ASSESSING OFFICER HAS PASSED THE ORDER IN THIS CASE U/S 143(3) OF I.T.ACT. IN THIS CASE, THE ASSESSEE DID NOT FILE THE RETURN OF INCOME HENCE THE ASSESSI NG OFFICER ISSUED NOTICE U/S 142(1). THERE WAS NO RETURN OF INCOME FILED BY THE ASSESSEE IN RESPONSE TO THE NOTICE ISSUED U/S 142(1) . THE ASSESSING OFFICER IS EMPOWERED TO ISSUE NOTICE U/S 142(1) FOR THE PURPOSE OF MAKING ASSESSMENT UNDER I.T.ACT AND CALLING FOR INFORMATION IN THE FOLLOWING CIRCUMSTANCES. (A) FOR THE PURPOSE OF MAKING THE ASSESSMENT, WHERE THE RETURN IS FURNISHED U/S 139 OF I.T.ACT. (B) WHERE THE ASSESSEE HAS NOT FURNISHED RETURN OF INCOME DIRECTING THE ASSESSEE TO FURNISH THE RETURN OF INCOME IN RESPECT OF HIS INCOME OR THE INCOME OF ANY OTHER PERSON IN RESPECT OF WHOM HE IS ASSESSABLE UNDER THIS ACT. 7 ITA NO. 252 /VIZ/201 3 MEDAPATI VENKAYAMMA, UBALANKA 5.1. FROM THE ABOVE, IT IS CLEAR TH AT THE ASSESSING OFFICER IS AUTHORIZED TO CALL FOR THE RETURN OF INCOME AND ALSO COLLECT INFORMATION FOR THE PURPOSE OF MAKING ASSESSMENT U/S 14 2 (1). IN CASE, IF THE ASSESSEE FAILS TO FURNISH THE RETURN OF INCOME, PROVISIONS OF SECTION 144 OF THE ACT APP LIES AND THE ASSESSING OFFICER IS REQUIRED TO COMPLETE THE ASSESSMENT AS PER THE PROCEDURE LAID DOWN U/S 143(2) / 144 OF I.T.ACT. THE TIME LIMIT FOR COMPLETION OF ASSESSMENT IS WITHIN TWO YEARS FROM THE END OF THE RELEVANT ASSESSMENT YEAR. IN CASE, THE A SSESSEE D ID NOT RESPOND TO THE NOTICE ISSUED U/S 142(1) AND THE ASSESSING OFFICER IS DUTY BOUND TO MAKE ASSESSMENT U/S 144 BY ISSUE OF SHOW CAUSE NOTICE. FOR READY REFERENCE, WE EXTRACT RELEVANT PROVISIONS OF SECTION 142(1) AND 144 OF I.T.ACT. SECTION 142(1) READS AS UNDER : INQUIRY BEFORE ASSESSMENT. 81 142. (1) FOR THE PURPOSE OF MAKING AN ASSESSMENT UNDER THIS ACT, THE 82 [ASSESSING] OFFICER MAY SERVE ON ANY PERSON WHO HAS MA DE A RETURN 83 [UNDER SECTION 115WD OR SECTION 139 84 [OR IN WHOSE CASE THE TIME ALLOWED UNDER SUB - SECTION (1) OF SECTION 139 ] FOR FURNISH ING THE RETURN HAS EXPIRED] A NOTICE REQUIRING HIM, ON A DATE TO BE THEREIN SPECIFIED, 85 [( I ) WHERE SUCH PERSON HAS NOT MADE A RETURN 86 [WITHIN THE TIME ALLOWED UNDER SUB - SECTION (1) OF SECTION 139 ] 87 [OR BEFORE THE END OF THE RELEVANT ASSESSMENT YEAR], TO FURNISH A RETURN OF HIS INCOME OR THE INCOME OF ANY OTHER PERSON IN RESPECT OF WHICH HE IS ASSESSABLE UNDER THIS ACT, IN THE PRESCRIBED FORM AND VERIFIED IN THE PRESCRIBED 8 ITA NO. 252 /VIZ/201 3 MEDAPATI VENKAYAMMA, UBALANKA MANNER 88 AND SETTING FORTH SUCH OTHER PARTICULARS AS MAY BE PRESCRIBED, OR :] NOTICE U/S 142(1) IS ISSUED IN CASE OF NON FILER CALLING FOR THE RETURN OF INCOME. IN THE INSTANT CASE, THE AO HAS ISSUED THE NOTICE CALLING FOR RETURN OF INCOME. SECTION 144 BEST JUDGMENT ASSESSMENT. 30 144. 31 [(1)] IF ANY PERSON ( A ) FAILS TO MAKE THE RETURN REQUIRED 32 [UNDER SUB - SECTION (1) OF SECTION 139 ] AND HAS NOT MADE A RETURN OR A REVISED RETURN UNDER SUB - SECTION (4) OR SUB - SECTION (5) OF THAT SECTION, OR ( B ) FAILS TO COMPLY WITH ALL THE TERMS OF A NOTICE ISSUED UNDER SUB - SECTION (1) OF SECTION 142 33 [OR FAILS TO COMPLY WITH A DIRECTION ISSUED UNDER SUB - SECTION (2A) OF THAT SECTION], OR ( C ) HAVING MADE A RETURN, FAILS TO COMPLY WITH ALL THE TERMS OF A NOTICE ISSUED UNDER SUB - SECTION (2) OF SECTION 143 , THE 34 [ASSESSING] OFFICER, AFTER TAKING INTO ACCOUNT ALL RELEVANT MATERIAL WHICH THE 34 [ASSESSING] OFFICER HAS GATHERED, 35 [SHALL, AFTER GIVING THE ASSESSEE AN OPPORTUNITY OF BEING HEARD, MAKE THE ASSESSMENT 36 ] OF THE TOTAL INCOME OR LOSS TO THE BEST OF HIS JUDGMENT AND DETERMINE THE SUM PAYABLE BY THE ASSESSEE 37 [* * *] ON THE BASIS OF SUCH ASSESSMENT : 38 [ PROVIDED THAT SUCH OPPORTUNITY SHALL BE GIVEN BY THE ASSESSING OFFICER BY SERVING A NOTICE CALLING UPON THE ASSESSEE TO SHOW CAUSE, ON A DATE AND TIME TO BE SPECIFIED IN THE NOTICE, WHY THE ASSESSMENT SHOULD NOT BE COMPLETED TO THE BEST OF HIS JUDGMENT : PROVIDED FURTHER THAT IT SHALL NOT BE NECESSARY TO GIVE SUCH OPPORTUNITY IN A CASE WHERE A NOTICE UNDER SUB - SECTION (1) OF SECTION 9 ITA NO. 252 /VIZ/201 3 MEDAPATI VENKAYAMMA, UBALANKA 142 HAS BEEN ISSUED PRIOR TO THE MAKING OF A N ASSESSMENT UNDER THIS SECTION.] 39 [(2) THE PROVISIONS OF THIS SECTION AS THEY STOOD IMMEDIATELY BEFORE THEIR AMENDMENT BY THE DIRECT TAX LAWS (AMENDMENT) ACT, 1987 (4 OF 1988), SHALL APPLY TO AND IN RELATION TO ANY ASSE SSMENT FOR THE ASSESSMENT YEAR COMMENCING ON THE 1ST DAY OF APRIL, 1988, OR ANY EARLIER ASSESSMENT YEAR AND REFERENCES IN THIS SECTION TO THE OTHER PROVISIONS OF THIS ACT SHALL BE CONSTRUED AS REFERENCES TO THOSE PROVISIONS AS FOR THE TIME BEING IN FORCE A ND APPLICABLE TO THE RELEVANT ASSESSMENT YEAR.] 5.2. IN THIS CASE, THE ASSESSING OFFICER HAS ISSUED NOTICE U/S 142(1) WITHIN TIME LIMIT ALLOW ED FOR FILING RETURN OF INCOME UNDER SECTION 139 OF I.T.ACT. SINCE THE ASSESSEE FAILED TO RESPOND TO THE NOTICE U/S 142(1), THE ASSESSING OFFICER SHOULD INVOKE THE PROVISIONS OF SECTION 144 AND COMPLETE THE ASSESSMENT AS PER SECTION 144 ON OR BEFORE 31.03.2011. SINCE THE ASSESSMENT IS ALREADY INITIATED , DURING PENDENCY OF ASSESSMENT PROCEEDINGS, THERE IS NO CASE FO R INVOKING THE PROVISIONS OF REASSESSMENT U/S 148 OF I.T.ACT AND REOPENING OF THE ASSESSMENT. 5.3. THE PROCEDURE FOR REASSESSMENT IS ALSO ENSHRINED IN SECTION 147, 148 AND 143 OF I.T.ACT. WHERE THE ASSESS EE IS HAVING TAXABLE INCOME BUT NOT FILED THE RETU RN OF INCOME, THE ASSESSING OFFICER IS EMPOWERED TO ISSUE NOTICE U/S 148 AFTER RECORDING THE REASONS. SIMILARLY, WHERE THE ASSESSEE HAS FURNISHED RETURN OF INCOME, BUT THE ASSESSING OFFICER HAS A 10 ITA NO. 252 /VIZ/201 3 MEDAPATI VENKAYAMMA, UBALANKA REASON TO BELIEVE THAT INCOME CHARGEABLE TO TAX HAS ESCAPED ASSESSMENT, AFTER RECORDING THE REASONS, THE ASSESSING OFFICER HA S TO TAKE ACTION U/S 148 AND ISSUE NOTICE U/S 148. IN BOTH THE INSTANCES, NOTICE U/S 148 I S ISSUED CALLING FOR THE RETURN OF INCOME FROM THE ASSESSEE WITHIN A SPECIFIED PERIOD. FOR READY R EFERENCE, WE EXTRACT THE RELEVANT P ROVISIONS OF I.T.ACT. [ ISSUE OF NOTICE WHERE INCOME HAS ESCAPED ASSESSMENT. 61 148. 62 [(1)] BEFORE MAKING THE ASSESSMENT, REASSESSMENT OR RECOMPUTATION UNDER SECTION 147 , THE ASSESSING OFFICER SHALL SER VE 63 ON THE ASSESSEE A NOTICE REQUIRING HIM TO FURNISH WITHIN SUCH PERIOD, 64 [* * *] AS MAY BE SPECIFIED IN THE NOTICE, A RETURN OF HIS INCOME OR THE INCOME OF ANY OTHER PERSON IN RESPECT OF WHICH HE IS ASSESSABLE UNDER THIS ACT DURING THE PREVIOUS YEAR CORRESPONDING TO THE RELEVANT ASSESSMENT YEAR, IN THE PRESCRIBED FORM AND VERIFIED IN THE PRESCRIBED MANNER AND SETTING FORTH SUCH OTHER PARTICULARS AS MAY BE PRES - CRIBED; AND THE PROVISION S OF THIS ACT SHALL, SO FAR AS MAY BE 65 , APPLY ACCORDINGLY AS IF SUCH RETURN WERE A RETURN REQUIRED TO BE FURNISHED UNDER SECTION 139 :] 5.4. ON FURNISHING THE RETURN OF INCOME U/S 148, THE ASSESSING OFFICER CAN CHOOSE TO DROP THE PROCEEDINGS AND PROCEED WITH THE REASSESSMENT PROCEEDINGS BY ISSUE OF NOTICE U/S 143(2) OF I.T.ACT AND IN CASE THE ASSESSEE DO NOT RESPOND TO NOTICE U/S 148, THE ASSES SING OFFICER CAN PROCEED TO COMPLETE THE ASSESSMENT U/S 144, BEST JUDGEMENT . ONCE THE RETURN IS FILED IN RESPONSE TO NOTICE U/S 148, PROVISIONS OF SECTION 11 ITA NO. 252 /VIZ/201 3 MEDAPATI VENKAYAMMA, UBALANKA 139, 143 AND 144 APPLIES IN CASE OF 148 ALSO. THEREFORE, PROVISIONS OF SECTION 142(1), 148 ARE PARA MATERIA FOR FURNISHING THE RETURN OF INCOME EXCEPT RECORDING THE REASONS IN THE CASE OF SECTION 148. ONCE THE ASSESSING OFFICER HAS INITIATED ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER CANNOT RESORT TO REASSESSMENT UNLESS THE ASSESSMENT PROCEEDIN GS ARE CONCLUDED. IN THIS CASE, THE ASSESSMENT PROCEEDINGS WE RE INITIATED BY ISSUE OF NOTICE U/S 142(1) AND BEFORE CONCLUDING THE ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER HAS ISSUED NOTICE U/S 148 FOR REASSESSMENT. SINCE THE NOTICE U/S 148 IS ISSUED WITHOUT CONCLUDING THE ASSESSMENT PROCEEDINGS, THE NOTICE ISSUED U/S 148 IS BAD IN LAW AND CANNOT BE SUSTAIN ED . THE ASSESSING OFFICER IS NOT PERMITTED TO CARRY ON THE ASSESSMENT PROCEEDINGS AND REASSESSMENT PROCEEDINGS SIMULTANEOUSLY . HONBLE ITAT DELHI BENCH SMC IN THE CASE OF SUNIL KUMAR JAIN VS. ACIT 71 TAXMAN.COM 136 HELD THAT TWO PARALLEL PROCEEDINGS ON SIMILAR SUBJECT MATTER CANNOT BE SUSTAINED. PROCEEDINGS U/S 147 CANNOT STAND DURING CONTINUATION OF PROCEEDINGS U/S 154. SIMILARLY, THE HONBLE D ELHI HIGH COURT IN THE CASE OF MAST E CH TECHNOLOGIES LTD. VS. DCIT 84 TAXMAN.COM 20 (2017), DELHI, HELD THAT W HERE THE REASSESSMENT INITIATED VIDE TWO NOTICES AND SECOND NOTICE 12 ITA NO. 252 /VIZ/201 3 MEDAPATI VENKAYAMMA, UBALANKA WAS BEYOND PRESCRIBED PERIOD AND FIRST NOTICE PROCEEDING WERE NOT CONTINUED AND NOWHERE IT WAS STATED THAT SECOND NOTICE WAS IN CONTINUATION OF FIRST ONE, REASSESSMENT WAS INVALID . IN THE INSTANT CASE, THE ASSESSING OFFICER HAS ISSUED NOTICE U/S 142(1) AND INITIATED ASSESSMENT PROCEEDINGS. THE ASSESSMENT PROCEEDINGS U/S 143(3)/144 S HOULD BE COMPLETED WITHIN THE PERIOD OF LIMITATION ALLOWED TO THE ASSESSING OFFICER I.E 31.03.2011 AND THE ASSESSING OFFICER ALLOWED TO GET THE ASSESSMENT BARRED BY LIMITATION AND PASSED THE ASSESSMENT ORDER U/S 143 ON 29.12.2011 WHICH WAS BARRED BY LIMIT ATION. THEREFORE, THE ASSESSMENT PASSED U/S 143 (3) ON 29.12.2011 BARRED BY LIMITATION AND THE SAME IS ANNULLED. 5.5. THE ASSESSING OFFICER ISSUED NOTICE U/S 148 FOR REASSESSMENT, DURING THE PENDENCY OF ASSESSMENT PROCEEDINGS BY ISSUE OF NOTICE U/S 148 WHICH IS BAD IN LAW AND CANNOT BE SUSTAINED AS PER THE DETAILED DISCUSSION MADE IN THE EARLIER PARAGRAPHS OF THIS ORDER . ACCORDINGLY, THE NOTICE ISSUED U/S 148 IS QUASHED. 6 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. 13 ITA NO. 252 /VIZ/201 3 MEDAPATI VENKAYAMMA, UBALANKA T HE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 18 TH AUG 2017 . SD/ - SD/ - ( . ) ( . . ) (V. DURGA RAO) ( D.S. SUNDER SINGH ) /JUDICIAL MEMBER /ACCOUNTANT MEMBER /VISAKHAPATNAM /DATED : 18 . 0 8 .2017 L. RAMA, SPS / COPY OF THE ORDER FORWARDED TO : - 1. / THE APPELLANT MEDAPATI VENKAYAMMA, W/O BHASKARA RAO , SIVALAYAM STREET, UBALANKA, RAVULAPALEM MANDALAM, E.G. DT. 2 . / THE RESPONDENT INCOME TAX OFFICER, WARD - 2, AMALAPURAM 3 . / THE COMMISSIONER OF INCOME TAX, RAJAHMUNDRY 4. ( ) / THE CIT (APPEALS) - 11, MUMBAI, CAMP OFFICE, VISAKHAPATNAM 4 . , , / DR, ITAT, VISAKHAPATNAM 5 . / GUARD FILE / BY ORDER // TRUE COPY // SR. PRIVATE SECRETARY ITAT, VISAKHAPATNAM