ASHOK BHUSHAN AND PRAKASH KRISHNA,JJ - (1.) Heard Sri DhananjayAwashti, learned counsel for the appellant and Sri S.D. Singh appearing for the respondent.
(2.) THE present appeal has been filed under Section 260 -A of the Income Tax Act, 1961 (hereinafter referred to as the Act) and is directed against the judgment and order dated 27th July, 2007 passed by the Income Tax Appellate Tribunal in I.T.A. No.305/LUC/2007 for assessment year 2001 -02 whereby the Tribunal has held that notice under Section 148 of the Act being issued after filing of revised return under Section 139(5) of the Act, is not valid. The background facts may be noted in brief. The dispute relates to assessment year 2001 -02. The assessee, respondent herein, filed original return on 31st July, 2001. The said return was processed under Section 143(1) of the Act on 24th March, 2004. It appears that subsequently, the assessee discovered some omission and wrong statement and she filed a revised return on 28th May, 2002 surrendering Rs.1,00,000/ - as income which was earlier shown as two gifts of Rs.50,000/ - each. The return was finalised under Section 143(1) of the Act by the order dated 24th March, 2004. It appears that thereafter a notice under Section 148 of the Act was issued on the ground that the gift claimed in the original return had escaped assessed. The Assessing Officer passed reassessment order on 28th February, 2005 on the footing that in the original return, the assessee had claimed two gifts each of Rs.50,000/ -, which she failed to prove. The case of the assessee that she had surrendered Rs.1,00,000/ - in the revised return was not accepted, as the filing of the return was not a bonafide act of the assessee. The matter was carried unsuccessfully before the Commissioner of Income Tax (Appeals) -I, Kanpur. The matter was further carried in appeal by the assessee before the Income Tax Appellate Tribunal. The Tribunal by the order under appeal has allowed it and has held that in view of the fact that assessee has filed a revised return even before initiation of any proceeding against her, there was no material with the Department to form an opinion that income of the assessee has escaped assessment. Challenging the aforesaid judgment and order of the Tribunal, present appeal has been filed.
(3.) IN the memo of appeal, following questions of law have been framed: - "1. Whether on the facts and in the circumstances of the case, the Hon'ble Tribunal was justified in law in quashing the order u/s 147/143(3) of the Income Tax Act, 1961 without appreciating that the so called revised return filed on 28.05.2002 was not a valid return within the meaning of provisions of section 139(5) of the Act. 2. Whether on the facts and in the circumstances of the case, the Hon'ble Tribunal was justified in law in quashing the reassessment proceedings without appreciating the ratio of decisions given by the Hon'ble Supreme Court in the case of G.C. Agarwal Vs. CIT (Assam and Nagaland, etc.) 186 ITR 571." ;