COMMISSIONER OF INCOME TAX Vs. TCP LTD.

JUDGEMENT

(1.) THE Revenue is in appeal against the order of the Income -tax Appellate Tribunal dated November 23, 2007, made in I.T.A. No. 2304/Mds/2006. The relevant assessment year is 2000 -01. The assessee has filed its income -tax return on November 30, 2000, declaring a total income of Rs. 2,01,51,054. The return of income was processed under section 143(1)(a) on March 9, 2001. However, the Assessing Officer issued a notice under section 148 of the Income -tax Act on April 30, 2001. Such a notice was objected to as time barred. In spite of that the Assessing Officer has not withdrawn the notice and he has issued notice under section 143(2) of the Act and completed the assessment on March 28, 2003. That was carried on appeal before the Commissioner of Income -tax (Appeals), who held that the assessment was ab initio void, inasmuch as the Assessing Officer had issued notice under section 148 of the Act when he had sufficient time to issue notice under section 143(3) of the Act. Aggrieved by the order of the Commissioner of Income -tax (Appeals), the Revenue filed an appeal before the Income -tax Appellate Tribunal. The Tribunal, following the decision of this court in the case of CIT v. K.M. Pachayappan : [2008] 304 ITR 264 has dismissed the appeal filed by the Revenue. The correctness of the said order is now canvassed before this court by formulating the following substantial question of law:

(2.) WE heard learned counsel for the Revenue, who fairly submitted that the issue is covered by the decision in the case of Trustees of H.E.H. The Nizam's Supplemental Family Trust v. CIT : [2000] 242 ITR 381 in which case, the Supreme Court considered the scope of reopening of the assessment and held as follows :