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2010 (4) TMI 1165 - AT - Income TaxValidity of notice issued u/s 143(2) beyond the prescribed period - unaccounted income for the block period 1988-89 to 1998-99 - Block assessment u/s 158BC - AO passed an order of assessment - CIT, set aside the assessment order and remanded the matter back to AO - Subsequent to the remand, AO held the same to be suppressed income and completed and assessment for the block period. HELD THAT:- It is not in dispute that in the instant case, notice was issued u/s.143(2) pursuant to a search conducted on 6.7.1998 in the premises of the respondent-assessee and it was with regard to the block period of 1988-89 to 1998-99 and the said notice though originally issued u/s 158 BC and the assessment order was completed and the same became a subject of remand. We find that subsequently the notice issued on 9.8.2002 is beyond the prescribed period of limitation. Keeping in mind the proviso to section 143(2) as it then stood, where the limitation period was one year, since the date of filing of the return in the instant case is 4.5.1999 keeping in mind the ration of the decision of the Apex Court in the case of HOTEL BLUE MOON [2010 (2) TMI 1 - SUPREME COURT], wherein it has been stated that if the AO for any reason repudiates the return filed by the assessee in response to a notice u/s 158BC (a) then he must necessarily issue a notice u/s 143(2) within the time prescribed in the proviso to Sec. 143(2). If there is a omission of the part of the Assessing Authority to issue notice u/s 143(2), then it is not a more procedural irregularity and the same is not curable. Therefore, the notice issued u/s 143(2) was beyond the period of limitation as stated in proviso (2) to the said section and hence the proceedings initiated pursuant to the notice are vitiated. We have to dismiss the appeal.
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