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2013 (11) TMI 839 - HC - Income TaxWhether issuance of notice u/s 143(2) of the act is mandatory and not procedural Deeming provision under section 292BB of the Act - No valid reassessment order could be passed before issuing the said notice within the time prescribed under law Reassessment done u/s 147 of the Income tax act - Without issuing notice under section 143(2) of the Act the Assessing Officer straight away proceeded to issue notice dated 7th January, 2003 under section 142(1) of Act calling upon the assesseee to explain the issue regarding taxability of lease rent and deduction from it the expenses regarding business income - Assessment had been framed under section 147 read with section 143(3) of the Act without issuing notice under section 143(2) of the Act which is the mandatory requirement Held that:- Time limit for issuing notice under section 143(2) has also been fixed which was earlier twelve months from the end of the month in which the return was furnished now it has been reduced to six months by Finance Act, 2008 with effect from 1st April, 2008. The notice contemplated under section 142(1) of the Act is only in respect of furnishing information on points or matters as the Assessing Officer may require. The two notices contemplated under section 142(1) and under section 143(2) of the Act are for entirely difference purposes. Reliance has been placed on the judgment in the case of Commissioner of Income Tax Allahabad and another vs. Sh. Mukesh Kumar Agarwal [2012 (7) TMI 543 - Allahabad High Court], wherein it was held that a deeming provisions to validate the notice in certain circumstances, would not have any effect where the very foundation of the jurisdiction of the Assessing officer is on the issuance of the notice under Section 143(2) of the Act - Following the aforesaid decision, the order of the Tribunal upholding the order of the Commissioner of Income Tax (Appeals) annulling the assessment under sections 147/148 read with Section 143(3) of the Act for want of issuance of notice under Section 143(2) of the Act does not suffer from any legal infirmity Decided against the Revenue.
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