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2019 (10) TMI 1583 - HC - Income TaxScrutiny assessment - Validity of notice u/s 143(2) - period of limitation - defects in return of income removed - HELD THAT:- The notice u/s 143(2) is a statutory notice, upon issuance of which, the AO assumes jurisdiction to frame the scrutiny assessment under subsection (3) of section 143 - Consequently, if such notice is not issued within the period specified in subsection (2) of section 143 viz. before the expiry of six months from the end of the financial year in which the return is furnished, it is not permissible for the AO to proceed further with the assessment. In the facts of the present case, petitioner filed its return of income u/s 139(1) on 29.11.2016. Since the return was defective, the petitioner was called upon to remove such defects, which came to be removed on 19.07.2017, that is, within the time allowed by the AO. Therefore, upon such defects being removed, the return would relate back to the date of filing of the original return, that is, 29.11.2016 and consequently, the limitation for issuance of notice under subsection (2) of section 143 would be 30.09.2017, viz. six months from the end of the financial year in which the return under subsection (1) of section 139 came to be filed. In the present case, it is an admitted position that the impugned notice under subsection (2) of section 143 of the Act has been issued on 11.08.2018, which is much beyond the period of limitation for issuance of such notice as envisaged under that subsection. The impugned notice, therefore, is clearly barred by limitation and cannot be sustained. Assessee appeal allowed.
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