Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (11) TMI 283 - AT - Income TaxRequirement to issue notice u/s 143(2) with a notice u/s 148 - Condition precedent for issuing notice fulfilled or not - Whether notices u/s 143(2) is mandatory in a reopened procedure and whether notices issued prior to the reopening would satisfy the requirement specified u/s 143(2) of the Act – Held that:- Issue of a notice u/s 143(2) of the Act, is mandatory even in a re-assessment proceeding initiated u/s 148 of the Act has been clearly laid down in ALPINE ELECTRONICS ASIA PTE LTD. Versus DIRECTOR GENERAL OF INCOME TAX & OTHERS [2012 (1) TMI 100 - DELHI HIGH COURT] that Section 143(2) was applicable to a proceedings u/s 147/148 also, since proviso to section 148 of the Act, granted certain specific liberties to the revenue, with regard to extension of time for serving such notices - issue of notice u/s 143(2) was procedural in nature - Section 143(2) of the Act, was a mandatory requirement and not a procedural one - a notice u/s 143(2) of the Act has been issued to the assessee, but on the date when such notice was issued viz., 23-09-2010 assessee had not filed any return pursuant to the reopening notice u/s 148 of the Act. Once the original return filed by the assessee was subject to processing u/s 143(1) of the Act, the procedure of assessment pursuant to such a return, in our opinion came to an end, since AO did not issue any notice within the 6 months period mentioned in proviso to section 143(2)(ii) - if the income has been understated or the income has escaped assessment, an AO is having the power to issue notice u/s 148 of the IT Act - Notice u/s 148 of the Act, issued to the assessee required it to file a return within 30 days from the date of service of such notice - any issue of notice prior to that date cannot be treated as a notice on a return filed by the assessee pursuant to a notice u/s 148 of the Act - there was no valid issue of notice u/s 143(2) of the IT Act, and the assessments were done without following the mandatory requirement u/s 143(2) of the IT Act – it rendered the subsequent proceedings all invalid - CIT(A) had only adjudicated on a position where there was no service of notices u/s 143(2) of the IT Act – thus, the assessment order of the CIT(A) is set aside – Decided in favour of assessee.
|