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2015 (3) TMI 16 - HC - Income TaxValidity of assessment - no notice was issued u/s.143(2) of the IT Act during the course of assessment proceedings - whether ITAT was right in law in upholding the assessment order passed by the Assessing Officer for A.Y. 1998-99 as in sum and substances u/s.144 of the IT Act, 1961? - Held that:- The facts of the present case show that the A.O. in respect of A.Y.1998-1999 of the Assessee-appellant, assessed income under Section 143(3) read with Section 147 at ₹ 14,96,750/-. In appeal, the C.I.T. (Appeals) maintained the assessment but on the point of interest, the appeal was partly allowed. The Tribunal passed the common order in respect of A.Y.1997-1998 as well as 1998-1999. The Tribunal found that proviso to Section 143(2) of the Act would apply only to a valid return and not to invalid return and hence, the A.O. was not required to issue notice under Section 143(2) of the Act and the assessment was to be made under Section 144 of the Act and, therefore, could be said as upheld. In our view, as the fact situations in the present case are the same, similar view, as was taken in [2015 (3) TMI 15 - GUJARAT HIGH COURT] deserves to be taken in the present matter wherein held that where the Assessing Officer in repudiation of the return filed under section 158BC(a) proceeds to make an enquiry, he has necessarily to follow the provisions of section 142, sub-sections (2) and (3) of section 143 and in absence of fulfillment of mandatory requirement of issuance of notice under section 143(2) both the authorities rightly and validly held against the Revenue and in favour of the assessee. Thus the assessment proceedings cannot be maintained - Decided in favour of assessee.
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