COMMISSIONER OF INCOME TAX SALEM Vs. SHAMLAL BAJAJ

JUDGEMENT

(1.) The Revenue is on appeal as against the order of the Tribunal relating to assessment year 1997-98 by raising the following substantial question of law:-

(2.) In spite of service of notice on the assessee, there is no representation either in person or through counsel. After hearing learned counsel for the Revenue, following order is passed.

(3.) It is seen from the discussion in the assessment order that originally the Officer considered the merits of the claim under Section 143(1)(a) of the Income Tax Act and made adjustments thereby disallowing the claim of deduction under Section 80HHC. The assessee went on appeal before the Commissioner of Income Tax (Appeals) and on the intimation sent under Section 143(1)(a) of the Act, the assessee submitted that there could not be any prima facie adjustment on the disputed question of law and on fact. The Commissioner of Income Tax (Appeals) allowed the assessee's claim on 24.3.2000, thereby set aside the intimation. As far as the proceedings under Section 147 of the Act is concerned, the issue was taken up by issuing notice under Section 148 of the Act on 23.6.2000. Since there was no response from the assessee, notice under Section 143(2) of the Act was issued on 1.3.2001. Since the assessee could not produce necessary document in support of his claim, the assessment was completed. Aggrieved by this, the assessee went on appeal before the Commissioner of Income Tax (Appeals), who agreed with the assessee that there was no ground for reopening the assessment. There was no new fact recorded permitting the Assessing officer to take up reassessment proceedings. In the circumstances, the assessee's appeal was allowed. Aggrieved by the same, the Revenue went on further appeal before the Tribunal, who held that there was no new information which had come into possession of the Assessing Officer for reopening the assessment, thereby rejected the Revenue's appeal. Aggrieved by this, the Revenue is on appeal before this Court.