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Scope of reassessment under s. 147 of the Act.

- During the pendency of a return filed under section 139 of the Act along with the refund application under section 237 of the Act, action could not have been taken under section 147/148 of the Act.
-the decision of the Division Bench in Consolidated Photo and Finvest Ltd. -vs- Assistant Commissioner of Income-Tax, [2006] 281 ITR 394(Delhi), inasmuch as it is irreconcilable with the views of the Full Bench in Commissioner of Income-Tax -vs- Kelvinator of India Ltd., [2002] 256 ITR 1, must be held not to lay down the correct law.
-If the assessment is not framed before the expiry of the period of limitation for a particular AY, it would have to be assumed that since proceedings had not been opened under Section 143(2), the Return had been accepted as correct. Thereafter recourse could be taken to Section 147 only if fresh material had been received by the AO after the expiry of limitation fixed for framing the original assessment.
-wherever and whenever it appears to the High Court that proceedings have been initiated or are continuing without the authority of the law the High Court would be in dereliction of duty if it hesitated in exercising the extraordinary powers contained under Articles 226/227 of the Constitution of India.

KLM ROYAL DUTCH AIRLINES vs. ADIT (Delhi High Court) dated 12.01.2007 (download pdf 50kb from http://www.itatonline.org/judgements_highcourt.php)

The National Tax Tribunal Ordinance is available here for download: http://www.itatonline.org/pdf/NTT_Ordinance.pdf

The following notice has just been received:

INCOME TAX APPELLATE TRIBUNAL,
MUMBAI BENCHES, MUMBAI;



NOTICE


In view of the Brihanmumbai Municipal Corporation (BMC) e

lection scheduled on 1st February 2007, no Benches will function on that date. The adjourned date will be intimated on the notice board.

As far as "I, J, and "K" Benches are concerned, the case fixed on 1.2.2007 before the respective Benches will be taken up for hearing/adjournment on 2nd February 2007.


  Sd/-
(G.E.VEERANHDRAPPA)
   VICE-PRESIDENT

Date:- 31 January, 2007,

decision of the Goa Bench of the Bombay High Court is here: http://www.itatonline.org/pdf/scoop_industries_s_80IA_s_32.pdf

Reassessment even within 4 years is not justified if the reopening is based on material which is already on record: Godrej Agrovet vs. ACIT http://www.itatonline.org/pdf/godrej_agrovet.pdf

The National Tax Tribunal decision of the Supreme Court dated 9th January 2007 is available for download here http://www.itatonline.org/pdf/ntt_sc.doc

The decision in Ishikawajma-Harima Heavy Industries Ltd vs. Director of Income Tax, Mumbai is available here. "http://www.itatonline.org/pdf/Ishikawajima_Supreme_Court_Order.pdf".

A Special Bench comprising of Hon'ble Members Dr. O.K. Narayanan, Shri G.C. Gupta and Shri Pramod Kumar has heard the following issue on 3rd Janaury 2007:

Questions :

Whether on facts and in law, the assessee, while computing book profits u/s 115JA of the Income tax Act, 1961, is entitled to reduce the net profit as per Profit & Loss A/c by –

The profits eligible for deduction u/s 80HHC actually computed under clause (a), (b) or (c) of sub-section (3) or sub-section 3A as the case may be;

OR

The profits eligible for deduction u/s 80HHC computed with reference to book profits (after adjustments) in the manner specified in sub-section (3) or sub-section (3A) of section  80HHC." 

in the case of M/S SYNCOM FORMULATIONS (I) LTD.