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2019 (2) TMI 639 - ITAT DELHIAssessment u/s 153A (1)(b) - whether papers were found from the residence of the Directors of the company? - Held that:- It has been recorded that certain papers were found and seized from the residence of the assessee (which is a company). No where it is stated that papers were found from the residence of the Directors of the company at Shalimar Bagh or during the search of the premises at B- 44 and that these papers belong to the assessee company justifying the initiation of proceedings under section 153C. It can safely be assumed that the reference to section 153C, is an afterthought in the event of the failure to explain the assessment under section 153A read with section 143(3) of the Act. Furthermore, it is clear that the prescribed procedure has not been followed for initiation of the proceedings under section 153C. Finally, it is seen that the assessee has raised the issue of validity of notice under section 153A(1)(a) the very first instance while filing the return . Hence, such defect cannot even be cured by the provisions of section 292B of the Act. In the circumstances, after considering the facts of the case and the relevant case laws on the subject, thus constrained to hold that the assessment under section 153A(1)(b) read with section 143(3) of the Act is void ah initio. Requirement of issuance of notice under section 143 (2) within period of limitation - Jurisdiction to pass the assessment order u/s 143(3) vide notice u/s 143(2) - the first notice u/s 143(2) was not issued within the time period as per section 143(2) - Held that:- Limitation for issuance of notice under section 143 (2) has to be reckoned from date of filing of original return of income, for year under consideration being 21/09/11 and notice under section 143 (2) has been issued on 06/03/13, which is beyond limitation period. There are plethora of decisions by Hon’ble Supreme Court in case of ACIT vs Hotel blue Moon [2010 (2) TMI 1 - SUPREME COURT OF INDIA] which opines settled legal position that, requirement of issuance of notice under section 143 (2) within period of limitation is mandatory for completing assessment under section 143(3) of the Act. - Decided in favour of assessee
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