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2011 (2) TMI 1129 - HC - Income TaxBlock assessment - Validity of notice - Whether the ITAT was right in holding that the notice u/s 158BD becomes defective merely because the AO has allowed less than 15 days time to file the return? - whether the notice u/s 158BD to be defective was not curable u/s 292B of the Act - Held that:- Tribunal erred in concluding that failure to give notice of 15 days will vitiate the assessment itself without considering the prejudice to the assessee. Total absence of notice may be on different footing but if notice is duly serviced, the assessee can either avail of the statutory time for filing of the return irrespective of shorter period mentioned in the notice or can be given fresh opportunity if it is held that the assessee suffered prejudice on account of shorter period mentioned in the notice. In any situation,it is not permissible to quash the assessment proceedings merely on the ground that period mentioned in the notice was lesser than the statutory period specified under Section 158BC(a). Where period specified in the notice is less than the statutory period, no prejudice is caused unless the assessee takes steps within the statutory time. The notice specifying lessor period can be read as specifying the statutory period, this principle is duly recognized under Section 292B of the Act. In favour of revenue.
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