KRISHNA MAHAL Vs. ASSISTANT COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE assessee is aggrieved by a notice dated September 8, 2000, issued under Section 148 of the Income-tax Act, 1961, intimating that a part of the income assessable for the year 1999-2000 had escaped assessment within the meaning of Section 147 of the Income-tax Act and calling upon the assessee to file a return in the prescribed form for that assessment year. THE assessee had filed a return for that year on September 30, 1999, for which an intimation under Section 143(1)(a) of the Act had been sent to it on October 15, 1999. In the return it had shown the cost of the construction put up by it as Rs. 92.12 lakhs.

(2.) ON the very day on which the intimation under Section 143(1)(a) of the Act was sent, namely, on October 15, 1999, the Assessing Officer had noticed the discrepancy in the cost of the construction as estimated by the valuer and as noted in the account books of the assessee and had sought a valuation report from the Departmental valuer.

(3.) COUNSEL for the Revenue submitted that what is done under Section 143(1)(a) is not an assessment, but merely despatch of an intimation acknowledging the filing of the return, and in a case where that intimation indicates any amount as being due towards tax it is given the status of a demand under Section 156. The assessment proper, it was submitted, could only be made under Section 143(3) and until that is done, or an assessment made under Section 147, there is no assessment at all merely by reason of an intimation having been sent under Section 143(1)(a).