K. Raviraja Pandian, J.:— The Revenue is on appeal against the order of the Tribunal dated January 3, 2008. The relevant assessment year is 2003-04.
2. The material facts culled out from the statement of facts stated in the memorandum of appeals are as follows:
The assessee is engaged in the business of software export. For the assessment year under consideration, the assessee-company has filed its return of income on November 13, 2003, admitting a total income of Rs. 2,34,810 after claiming deduction under section 10A in a sum of Rs. 3,09,382. The return of income was processed under section 143(1) on December 20, 2003. Thereafter, notice under section 148 was issued on October 5, 2004. The assessment was reopened under section 147 as the Assessing Officer was of the view that income chargeable to tax has escaped assessment as the assessee has included interest receipt from bank in a sum of Rs. 17,09,661 in the profits of business eligible for deduction under section 10A of the Act. Subsequently, the Assessing Officer has issued notice under section 143(2) and after calling for further details and clarifications, has completed the assessment on December 23, 2005, whereby he has computed the business loss at Rs. 3,46,544 in respect of the unit eligible for deduction under section 10A and brought to tax the interest income mentioned above as “Income from other sources”. The appeal against the order at the instance of the assessee to the Commissioner of Income-tax (Appeals) was not successful, though the point of reopening of assessment has been taken before him. The assessee carried the matter on further appeal to the Tribunal. The Tribunal has taken the issue as to whether the Assessing Officer can take action under section 148 when the time for issuing notice under section 143(2) has not expired. After hearing the parties, the Tribunal held in favour of the assessee on the issue of reopening of the assessment when the time for issuing notice under section 143(2), had not expired, by following the decision of this court in the case of Commissioner Of Income-Tax v. K.M Pachayappan [2008] 304 ITR 264 (Mad) in T.C.A No. 870 of 2007, dated July 4, 2007, wherein this court has held that no reassessment proceeding could be initiated so long as the assessment proceedings pending on the basis of the return already filed are not terminated. The Revenue, aggrieved over that portion of the order, filed the present appeal by formulating the following questions of law:
“1. Whether, in the facts and circumstances of the case, the Tribunal was right in holding that reassessment proceedings are not valid since the Assessing Officer is barred in initiating the proceedings under section 148 when the time for issuance of notice under section 143(2) had not expired?
2. Whether, in the facts and circumstances of the case, the Tribunal was right in holding that the appeal by the Revenue is infructuous?”
3. We have heard the argument of the learned counsel for the Revenue, who submitted that the issue has already been decided against the revenue by the abovecited judgment of the Division Bench of this court.
4. We have also perused the above referred judgment of the Division Bench of this court dated July 4, 2007, wherein it is held as follows (page 268):
“Applying the principles enunciated in the judgments of the Supreme Court as well as the Delhi High Court, cited supra, the Tribunal is right in coming to a conclusion that no action could be initiated under section 147 of the Act, when there is a pendency of the return before the Assessing Officer.
5. The reasons given by the Tribunal are based on valid materials and evidence and we do not find any error or illegality in the order of the Tribunal so as to warrant interference.”
6. Following the said decision, these appeals are dismissed. Consequently, connected miscellaneous petition is also dismissed.