LAWS(MAD)-2004-11-52

COMMISSIONER OF INCOME TAX Vs. M CHELLAPPAN

Decided On November 09, 2004
COMMISSIONER OF INCOME TAX Appellant
V/S
M.CHELLAPPAN Respondents

JUDGEMENT

(1.) THE revenue is the appellant in these appeals filed against the order of the Income Tax Appellate Tribunal Madras 'b' Bench dated 16. 9. 2003 made in I. T. A. Nos. 609, 610 and 611/mds/2003 and I. T. A. Nos. 617, 618 and 619/mds/2003.

(2.) BRIEF facts of the case, so far as they are relevant are as under: the assessees' filed returns of income and the same were processed under Section 143 (1) (a) of the Income Tax Act (for brevity "the Act" ). The assessees' derived income from property and share income from firms. Subsequently, the Assessing Officer issued notices under Section 148 of the Act finding that the assessees claimed excessive deductions under Section 24 (1) (vi) of the Act while computing income from property. The Assessing Officer disallowed the excess claim made by the assessees.

(3.) THE Punjab and Haryana High Court in VIPAN KHANNA v. COMMISSIONER OF INCOME TAX, [2002] 255 ITR 220 held where no notice under Section 143 (2) of the Act had been served on the assessee within the stipulated period and the return as such had become final, in view of the amendment made in Section 147 of the Act with effect from 1st April, 1989, the Assessing Officer could not only assess or reassess the escaped income in respect of which proceedings under Section 147 of the Act have been initiated, but also any other income chargeable to tax which may have escaped assessment and which comes to his knowledge subsequently, in the course of such proceedings.