2010 (2) TMI 1 - SC - Income Tax

Block Assessment - whether notice u/s 143(2) is mandatory for completing block assessment under Chapter XIV-B of the Act - According to the assessee, service of notice on the assessee under Section 143(2) of the Act within the prescribed period of time is a pre-requisite for framing the block assessment under Chapter XIV-B of the Act - ITAT took the view that non-issue of notice under Section 143(2) is only a procedural irregularity and the same is curable - HC decided that the provisions of Section 142 and sub- sections (2) and (3) of Section 143 will have mandatory application in a case where the assessing officer in repudiation of return filed in response to a notice issued under Section 158 BC(a) proceeds to make an inquiry - held that - Section 158 BH provides for application of the other provisions of the Act. It reads: "Save as otherwise provided in this Chapter, all the other provisions of this Act shall apply to assessment made under this Chapter." This is an enabling provision, which makes all the provisions of the Act, save as otherwise provided, applicable for proceedings for block assessment. The provisions which are specifically included are those which are available in Chapter XIV-B of the Act, which includes Section 142 and sub-sections (2) and (3) of Section 143 - Decision of HC upheld - Block assessment can not be made without issuing notice u/s 143(2) - Decided in favor of Assessee