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2018 (8) TMI 2095 - HC - Income TaxRe-opening of assessment u/s 147 - as argued AO did not issue any further notice as called for by law u/s 143(2) of the Act, within the time prescribed - notice was premised upon the information received by the Office of the Commissioner of Income Tax, Delhi-V through a letter stating that the petitioner/assessee, subsidiary of an overseas company, had a dependent Permanent Establishment (PE) in India whose activities were subject to Arms Length Price (ALP) determination under Section 92CA - HELD THAT:- Notice was issued in these proceedings; the interim order permitted the Revenue to continue with the re-assessment proceedings provided no final order was made. Consequently, the reference made to the TPO (consequent to the orders of reference) resulted in TPO determination on 29.01.2015. TPO held that no adjustment was called for having regard to the overall circumstances of the case. This fact – though subsequent to the filing of the petition is relied upon by the assessee. Additionally, it is contended that pursuant to the reassessment notice the AO did not issue any further notice as called for by law under Section 143(2) of the Act, within the time prescribed, proposing to take further proceedings in the re-assessment. This aspect too is undisputed. The notice under Section 143(2) of the Act ought to have been issued within six months prescribed period (which in this case ended on 30.09.2013), however, that notice was issued on 09.01.2014. This aspect was highlighted not in the petition but in the course of the proceedings in the rejoinder filed by the assessee sometime in July, 2016. It sought to follow this up through an amendment application - In the light of these events, which are both subsequent to the initiation of the re assessment proceedings, the entire purpose for re-assessment, assuming that there was any, can no longer be achieved. The judgment of this Court in ‘Pr. Commissioner of Income Tax vs. Silver Line [2015 (11) TMI 809 - DELHI HIGH COURT] and the other subsequent decisions have ruled that omission to issue notice u/s 143(2) of the Act within the time stipulated in respect of any assessment is fatal. Reassessment notice and all consequent proceedings emanating from it are hereby quashed.
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