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2017 (3) TMI 978 - HC - Income TaxBlock assessment - finding was recorded by CIT-A that notice u/s 143(2) was not issued, and that the judgment in Asst. CIT v. Hotel Blue Moon [2010 (2) TMI 1 - SUPREME COURT OF INDIA] is per incuriam in view of the judgment reported in Govt. of A. P. v. J. B. Educational Society [2005 (2) TMI 824 - Supreme Court Of India ] and State of Punjab v. Shamlal Murari [1975 (10) TMI 105 - SUPREME COURT] - Held that:- In Hotel Blue Moon (supra), it is categorically held that the block assessment cannot be framed until notice under section 143(2) has been served upon the assessee. Since the Commissioner of Income-tax (Appeals) has recorded a finding that notice was not served, therefore, in view of the judgment in Hotel Blue Moon's case (supra), an order of assessment could not have been passed. The reasoning given by the learned Commissioner that the judgment is per incuriam is based upon two Supreme Court judgments. The said finding is not tenable. Neither of the judgments refers/deals with the case of block assessment and of not serving a notice under section 143(2) which issue was raised and decided in Hotel Blue Moon's case (supra). In view of the judgment in Hotel Blue Moon's case (supra), the learned Commissioner, Income-tax (Appeals) has committed grave illegality in holding that such judgment is per incuriam. The order passed by the learned Commissioner of Income-tax (Appeals) is set aside.
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