KAMAL TEXTILES Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THE petitioners are assessed to income-tax. THEy submitted their returns for the year of assessment 1989-90. THE income-tax authority took steps under Section 143 of the Income-tax Act and issued an intimation to the assesses specifying the sum payable as tax in accordance with the returns submitted. Such intimation is to be treated as a notice of demand under Section 156 of the Act. It appears that thereafter the authorities issued notices, annexures 12 to 38, in exercise of powers under Section 143(2) of the Act with a view to assess the income of the assessee for the relevant year. It is these notices which are challenged in this petition. It may be mentioned that such a notice has also been issued in Miscellaneous Petition No. 2697 of 1990 under similar circumstances and for the same assessment year.

(2.) CHALLENGING the notices, Shri B. L. Nema, learned counsel for the petitioners, submitted that the intimation sent to the assessees under Section 143(l)(a)(i) is after due assessment on the basis of the returns submitted. This is clear from the terms of that provision which, by a fiction, requires such intimation as notice of assessment under Section 156 of the Act. The submission made, therefore, is that the proceedings under Section 143(2) of the Act are tantamount to proceedings for reassessment which could be taken only in terms of Sections 147 and 148 of the Act. In our opinion, the contention cannot be acceded to. Section 143, so far as relevant for the purposes of this petition, is as follows :

(3.) WE are also not impressed with the argument of learned counsel that the issuance of intimation under Sub-section (1)(a)(i) of Section 143 is final because no appeal is provided against the demand of the amount of income-tax or interest. This contention overlooks the fact that even if not appealable, it is clearly revisable. However, as we have noticed above, the assessment made in proceedings under Section 143(2) shall, for all purposes, be an assessment of tax made under Section 143(3) and, in that event, shall be appealable under Section 246(1)(a) of the Act.