COMMISSIONER OF INCOME-TAX VS K. R. CHENNI KRISHNA CHETTY
1999 P T D 554
[225 I T R 234]
[Madras High Court (India)]
Before K. A. Thanikkachalam and N. V. Balasubramanian, JJ
COMMISSIONER OF INCOME-TAX
Versus
K. R. CHENNI KRISHNA CHETTY
Tax Case No.644 (Reference No.345 of 1983), decided on 25/04/1996.
Income-tax---
----Reassessment---Assessment---Limitation---Extended period of limitation- Assessment under S.143 and under S.147 are different---Extended period of limitation under S.153 is not available in case of reassessment---Indian Income Tax Act, 1961, Ss. 143, 147 & 153.
The assessment made under section 143 and the assessment made under section 147 of the Income Tax Act, 1961, are two different assessments and they are not one and the same. When the assessment is made in pursuance of an order under section 144-B the extended time-limit as contemplated under section 153 would not be available in making the assessment under section 147 of the Act.
C.I.T. v. Sundaram Spinning Mills (1997) 225 I T R 214 (Mad.) fol.
C. V. Rajan for the Commissioner.
P. P. S. Janarthana Raja for the Assessee
JUDGMENT
K. A. THANIKKACHALAM, J.---At the instance of the Department, the Tribunal referred the following question for the opinion of this Court under section 256(1) of the Income Tax Act, 1961:
Whether the Appellate Tribunal is correct and justified in law in holding that the expression 'an assessment to be made under section 143(3)' used in section 144-B, is confined only to the assessment to be made under section 143 and does not cover reassessments to be made under section 147 of the Income-tax Act with the consequence that the procedure prescribed under section, 144-B and extended, time-limit provided in the Explanation to section 153 is not available to reassessments to be made under section 147?"
The point for consideration is whether the expression "an assessment to be made under section 143(3): used in section 144-B is confined only to the assessment to be made under section 143 and does not cover reassessments to be made under section 147 of the Income-tax Act with the consequence that the procedure prescribed under section 144-B and extended time-limit provided in the Explanation to section 153 is not available to reassessment to be made under section 147.
A similar question came up for consideration before this Court in Tax Case Nos.573 to 575 of 1983 in the case of Sundaram Spinning Mills, Madras Aluminium Co. Ltd. and Gordhandas Bhagwandas (1997) 225 I T R 214, wherein by judgment, dated April 23, 1996, this Court held that the assessment made under section 143 and the assessment made under section 147 of the Income-tax Act are two different assessments end they are not one and the same. When the assessment is made in pursuance of an order under section 144-B, the extended time-limit as contemplated under section 153 would not be available in making the assessment under section 147. In view of the earlier decisions of this Court cited supra, we answer the question referred to us in the affirmative and against the Department. No costs.
M.B.A./1717/FCReference answered.