BIHAR POLICE BUILDING CONSTRUCTION CORPORATION PVT. LTD. Vs. PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) Heard Mr. Prakash Sahay for the petitioner and Ms. Archana Sinha, learned Sr. Standing Counsel for the Income Tax Department.

(2.) The petitioner is aggrieved by the assessment order passed for the Assessment Year 2004-05 pertaining to the Financial Year 2003-04 together with appellate order passed in Appeal No.466/CIT(A)-1/2006-07 by the Commissioner of Income Tax (Appeals), which orders are impugned at Annexures-1 and 3, respectively to the writ petition. The exercise is under Section 143 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act').

(3.) Mr. Prakash Sahay, learned counsel representing the petitioner, submits that even on merits the petitioner has a strong case as according to him the interest accrued on the deposit, cannot be treated as income because it simply adds to the grant released by the State Government from time to time and the interest amount is reduced to that extent from the fresh grant that the petitioner- Police Building Construction Corporation would receive from the State. He states that the findings on other issues as well are not sustainable but the issue which closes the contest in favour of the petitioner is that the assessment order passed under Section 143 of 'the Act' is time barred and hit by the proviso attached to Section 143(2) of 'the Act' which, inter alia, mandates that no notice in this regard can be served on the assessee on the expiry of six months from the end of the financial year in which the return was filed.