Bombay H.C : Whether proceedings under s. 148 could have been instituted when the return filed on 29th June, 1982, was pending assessment.

Counsel Appeared

R.V. Desai with J.P. Deodhar, for the Appellant : F.B. Andhyarujina, for the Respondent

JUDGMENT

BY THE COURT :

On 29th June, 1982, a return was filed by the assessee. Pending the said return, notice under s. 148 of the IT Act, 1961, came to be issued on 28th Jan., 1985. The assessee was, accordingly, reassessed on 15th march, 1985. This order under s. 147 came to be set aside on 28th Jan., 1986, and the matter was remanded back for fresh assessment which was made on 30th March, 1988. This was once again set aside by the appellate authority on 17th Feb., 1989, with a direction to the AO to make fresh assessment which was done on 26th March, 1990.

2. In the present matter, the short point which arose for consideration before the Tribunal was whether proceedings under s. 148 could have been instituted when the return filed on 29th June, 1982, was pending assessment. The Tribunal came to the conclusion that notice under s. 148 and proceedings taken by the Department thereafter were bad in law as there could not have been reopening of the assessment when the return dt. 29th June, 1982, was pending. We have examined the records ourselves and we find that there is nothing to indicate how reassessment proceedings could have been instituted when the main return filed by the assessee, on 29th June, 1982, was still pending assessment. All proceedings have been taken thereafter pursuant to the reopening of the assessment in 1985, losing sight of the fact that the main return filed by the assessee on 29th June, 1982, was pending. In the above circumstances, the Tribunal was right in annulling the assessment proceedings. Hence, no substantial question of law arises. Appeal is dismissed.

[Citation : 247 ITR 772]