Re-assessment can be completed even within time specified for assessment under sec 143(3)

Even where notice under section 143(2) had been issued and time provided for regular assessment under section 143(3) had not been expired, reassessment is permissible

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[2013] 40 taxmann.com 125 (Kerala)

HIGH COURT OF KERALA

Commissioner of Income-tax, Cochin

v.

Abad Fisheries*

Section 147 read with section 260, of the Income-tax Act, 1961 - Income escaping assessment - General [Conditions precedent] - Assessment year 2003-04 - Supreme Court had held that even if revenue has not preferred appeal against decision of High Court in every case, same need not be treated as law accepted by revenue - While dismissing revenue's appeal, in view of decision of Delhi and Madras High Courts, instant High Court in CIT v. Abad Fisheries [2011] 16 taxmann.com 398/[2012] 204 Taxman 267 (Ker.) had held that where notice under section 143(2) had been issued and time provided for regular assessment under section 143(3) had not been expired, no reassessment is permissible - However, against decision of above judgment of Delhi and Madras High Courts, Supreme Court had admitted SLPs - Whether in view of this, impugned decision of instant High Court was to be recalled - Held yes - Whether consequently, it was to be held that such reassessment was valid - Held, yes [In favour of revenue]