Multiple Assessement

[CA. Sanjay Agrawal]

My client had received Time Barred Order u/s. 153 and an appeal is preferred which is pending disposal by concerned CIT (A). Surprisingly my client again received notice for reassessment proceedings from the Income Tax Officer. Please advise me whether ITO can Again ask for reassessment proceeding once he passed the Order U/s. 147  and previous order passed by him pending before CIT Appeal. 

[balas123]

Hi Mr. Sanjay,

Answer to your query is 'Yes'.

I guess the subject matter being reassessed is different to the matter under appeal. (pls. read point c below).

ITO can reassess to tax any income:
a. has reason to believe that any income chargeable to tax has escaped assessment / reassessment for any AY.

b. It is also provided if an assesses is assessed under sec 147 (your ref case), it is open to reassessment if any income chargeable to tax has escaped assessment for such AY, with the clause reading '..to disclose fully and truly all material facts necessary for his assessment' .

The specific clause (relevant parts only) in the section is reproduced below :
"
Provided that where an assessment ...  or this section has been made for the relevant assessment year, ...unless any income chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee ...or to disclose fully and truly all material facts necessary for his assessment, for that assessment year:
"

c. Assessing Officer may assess or reassess such income, other than the income involving matters which are the subject matters of any appeal.

Hope this helps.

Rgds
Balaji Srini FCA., LL.B.

[satyanveshi]

Please ask for the reason on the basis of which fresh notice u/s 148 was issued. ......whether four years are already lapsed or not. Change of opinion also to be verified. First of all, please file the return of income and seek the reasons.....