Reassessment u/s 147 when Assessee is in Appeal

Hi Mr Choksi,

Thanks for your post. The Bombay High Court did say in Metro Auto Corporation case that the AO couldn't issue notice for reassessment when an appeal in respect of original assessment was pending with an appellate authority. But Finance Bill 2008 has blunted this judgement by introducing second proviso to Section 147:[Provided further that the Assessing Officer may assess or reassess such income, other than the income involving matters which are the subject matter of any appeal, reference or revision, which is chargeable to tax and has escaped assessment"]Clearly, 1st April 2008 onwards, the AO will be well within his right to start reassessment proceedings even whilst the assessee is in appeal against the AO's order in the original assessment. Of course the matters in respect of which he wants to reopen assessment shouldn't be the ones that the assessee has gone into appeal for.Thanks,CA Sanjeev Bedi--- In ICAI_CIRC_MEERUT_ CA@yahoogroups. com, "Kunjan Choksi" wrote:>> I donot concur with the views fully. Please refer the decision of Bombay> High Court in the case of Metro Auto Corporation v. ITO (2006) 286 ITR 618> (Bom), where reassessment was held impermissible, when an assessment is> pending in appeal before the Tribunal.> > On 16/04/2008, Sanjeev Bedi wrote:> >> > Hi Vishal,> >> > Yes, the AO can issue a reassessment notice u/s 148 for the same> > assessment year even though appeal with the Tribunal against the> > order of the CIT (A) is pending.> >> > The AO retains his power to invoke Section 147 within 4 years of the> > end of the relevant assessment year for which he has passed his> > order u/s 143(3). In your case, the AO has already passed the order> > u/s 143(3). He could have suspected an item of income escaping> > assessment even in later years up until the 4th year and reopened> > the assessment. His right to reassess the assessee's income starts> > the moment the assessment u/s 143(3) has been completed at HIS end.> > The fact that the assessee has gone into appeal does not deter the> > AO to exercise his jurisdiction u/s 147/148 if he suspects some> > income playing truant.> >> > Reassessment proceedings can't be initiated whilst the assessment> > proceedings are pending. By "assessment proceedings" we mean the> > assessment proceedings at the AO's end; the CIT (A) and the Tribunal> > aren't assessing authorities.> >> > So the AO is within his right to reassess your client's income even> > whilst you're in appeal provided of course he satisfies the litmus> > test of having sufficient "reason to believe".> >> > Thanks,> >> > CA Sanjeev Bedi> >> > --- In ICAI_CIRC_MEERUT_ CA@yahoogroups. com,> > "CA Vishal Gupta"> > wrote:> > >> > > Dear Members,> > >> > > in one of my case, assessment order was passed by ITO U/s 143 (3),> > against which an appeal was filed before CIT (A), from where part> > relief was granted. Further an appeal was moved to ITAT for the> > balance addition in the original assessment order. meanwhile during> > this a notice under section 148 was received by the assessee to> > reassess the income of the assessee on some reasons. i want to know> > whether he can issue a notice U/s 148 for the same assessment year> > while the appeal against the original order U/s 143 (3) for the same> > year was pending.> > >> > > CA. Vishal Gupta