TMI Blog2019 (10) TMI 720X X X X Extracts X X X X X X X X Extracts X X X X ..... ed u/s 143(3) without issue of notice U/s 143(2) of the Act. The reassessment framed by the AO without issuing notice u/s 143(2) is bad in law and same is quashed. Since the reassessment is quashed for want of notice issued under section 143(2) of the IT Act, therefore, the other ground raised by the assessee becomes infructuous and not taken up for adjudication. - Appeal of the assessee is allowed. - ITA No. 804/JP/2019 - - - Dated:- 10-10-2019 - Shri Shri Vijay Pal Rao, Judicial Member For the Assessee : Shri O.P. Batheja, A/R For the Revenue : Shri Abhishek Sharma (Addl. CIT) ORDER PER VIJAY PAL RAO, JM : This appeal by the assessee is dire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation, the assessee made cash deposit of ₹ 17,84,500/- in the savings bank with Union Bank of India. The AO reopened the assessment on the basis of the AIR information regarding the deposit of cash by issuing a notice under section 148 of the IT Act on 29.03.2017. The assessee filed the return of income through e-filing on 08.12.2017 declaring total income at ₹ 1,38,240/-. The reassessment was completed by the AO by making an addition of ₹ 17,84,000/- on account of cash deposit in the bank account under section 69A of the IT Act. The ld. A/R has thus contended that the reassessment was completed by the AO without issuing notice under section 143(2) of the IT Act. In support of his contention h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. That the appellant did not file regular return of income for the year under consideration. 3. That on the basis of NMS details, the A.O. has issued notice u/s 148 of the Act on 29.03.2017. However, still no return of income was filed within stipulated dates. Finally, the appellant filed return of income for the year under consideration on 08.12.2017 declaring income of ₹ 1,38,240/- declaring income u/s 44AD of the Act. 4. That the A.O. has found cash deposits of ₹ 17,84,000/- in his bank accounts. 5. That the appellant had submitted that it was out of payments received from previous creditors when during preceding years the appellant was running liquor business which has b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of income and then making the addition. The final computation of total income of the assessee by the AO is as under :- Return Income of Rs. 1,38,240/- Addition On account of unexplained money u/s 69A 17,84,000/- Total Income of Rs. 19,22,240/- Once the assessee filed the return of income and which was taken up for scrutiny assessment in the reassessment proceedings, then it is a condition precedent for assuming the jurisdiction that notice under section 143(2) is issued. Though a notice dated 11.12.2017 stated to be issued by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.03.2015. The AO had concluded the assessment without issuing notice under section 143(2) of the Act after the return was filed by the assessee in response to notice under section 148 of the Act. The AO after receiving the return of the appellant filed in pursuance to notice u/s 148 of the Income Tax Act, 1961 did not issue notice u/s 143(2) of the Act which is sine qua non for assuming jurisdiction to assess the case. This is a grave error which is even not rectifiable u/s 292BB of the Act and hence order so passed lacks proper authority with the AO and hence the order so passed deserves to be declared void ab initio. In case of reassessment proceedings also once the assessee furnishes his return, same is considered as a return required t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order u/ s 143(3) it is necessary to issue a notice u/ s 143(2) of the Act, and in absence of notice u/s 143(2) the assumption of jurisdiction itself would be invalid. (iii) Travancore Diagnostics P Ltd. v/s ACIT 390 ITR 167 (Kerela HC): Omission to issue notice u/s 143(2) is incurable defect even u/s 292BB of the Income Tax Act, 1961. (iv) PCIT - 08 v/s Jai Shiv Shankar Traders P Ltd. 383 ITR 448 (Delhi): Issue of notice u/s 143(2) is not a procedural requirement and is mandatory and completion of assessment without issue of notice u/s 143(2) is fatal to the assessment. In this case return was filed after issuance of notice u/s 142(1) and since no notice was issued u/s 143(2) the assessment was held to be invalid. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
