COMMISSIONER OF INCOME TAX Vs. M P SINGH

JUDGEMENT

(1.) The Revenue has filed the present appeal under Section 260A of the IT Act, 1961 (for short the Act ) against the order dt. 5th April, 2007, passed by the Income-tax Appellate Tribunal, Delhi Bench I, New Delhi (for short the Tribunal ), in ITA No. 316/Del/2005 for the asst. yr. 1999-2000 raising the following proposed substantial questions of law:

(2.) The assessee did not furnish his return of income voluntarily. The AO issued notice under Section 142(1) of the Act on 23rd Feb., 2000, calling upon him to furnish the return of the income. The assessee did not file any return upto 31st March, 2001, i.e., the date upto which the assessee could file the said return. The assessee filed his return of income on 18th Oct., 2001, declaring income of Rs. 5,56,580. Since the said return filed by the assessee was treated as invalid return, the AO issued notice under Section 148 of the Act on 21st Nov., 2002, after recording reasons. Assessment under Section 143(3)/147 of the Act was completed on 26th March, 2004, at an income of Rs. 26,04,210.

(3.) Aggrieved against this order of assessment, the assessee filed an appeal before CIT(A) on the ground that since proceedings under Section 142(1) of the Act had been initiated by the AO vide notice dt. 23rd Feb., 2000, and in response to the said notice, return of income had been duly filed by the appellant, therefore, there was nothing in law which could support the action of the AO to issue notice under Section 147 of the IT Act as there was no case for the AO to hold that the income had escaped assessment. Before the CIT(A), the following undisputed facts emerged in the case: