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2014 (10) TMI 627 - AT - Income TaxAssessment order passed u/s 143(3) quashed Failure to serve notice u/s 143 - AO was of the view that notice u/s. 143(2) of the Act was issued to the assessee on 23/09/2010 fixing the date of hearing for 07/10/2010 and thereafter also, other notices were issued u/s. 143(2) of the Act - Held that:- At the time of hearing, nobody was present on behalf of the assessee neither any adjournment was sought following the decision in ITO, Ward-1(2), Udaipur Vs. Shri Bhuvanesh Maheshwari, Prop. M/s. B. Maheshwari & Co., Udaipur [2014 (10) TMI 296 - ITAT JODHPUR] also in ACIT & another Vs. Hotel Blue Moon [2010 (2) TMI 1 - SUPREME COURT OF INDIA] it has been held that after the return is filed, clause (b) of section 158BC provides that the AO shall proceed to determine the undisclosed income of the block period in the manner laid down in section 158BB and "the provisions of section 142, sub-sections (2) and (3) of section 143, section 144 and section145 shall, so far as may be, apply. This clause enables the AO after the return is filed, to complete the assessment u/s 143(2) by following the procedure like issue of notice u/s 143(2)/142 - This does not provide accepting the return as provided under section 143(3) only - If an assessment is to be completed u/s 143(3) read with section 158BC, notice under section 143(2) should be issued within one year from the date of filing of the block return - the omission on the part of assessing authority to issue notice u/s 143(2) of the Act cannot be procedural irregularity and is not curable - requirement of notice u/s 143(2) of the Act cannot be dispensed with - since the AO failed to serve the notice u/s 143(2) of the Act to the assessee within the stipulated time limit - CIT(A) rightly quashed the assessment framed by the AO on the basis of invalid notice u/s 143(2) of the Act Decided against revenue.
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