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2021 (8) TMI 804 - AT - Income TaxReopening of assessment u/s 147 - non issue of notice under section 143(2) - HELD THAT:- There is no dispute that the Assessing Officer issued notice under section 148 on 7.1.2010 and assessee has not filed any return of income in response to the said notice under section 148. There is no requirement of issuing any notice under section 143(2) by the Assessing Officer and thus the notice issued by the AO under section 143(2) on 29.06.2010 cannot be challenged on the ground of limitation. The issuance of notice under section 143(2) in the absence of any return filed by the assessee shall have no consequence. Hence, the assessment framed by the Assessing Officer under section 143(3) read with section 147 cannot be challenged on the ground of limitation for notice under section 143(2) of the Act. Accordingly, the ground no. 1 of assessee’s appeal is de void of any merit and substance and the same is dismissed. Validity of initiation of proceedings u/s 148 - as argued while recording the reasons AO has not quantified the income chargeable to tax which has escaped assessment - HELD THAT:- The case of the assessee does not fall in any of the clauses of section 149(1) of the Income Tax Act then the decisions relied upon the learned AR of the assessee are not applicable. Accordingly, when all the primary facts are available with the Assessing Officer, the objection raised by the assessee against the validity of notice under section 148 is without any merit or substance, the same is rejected. Addition applying the provisions of section 50C - Assessee claimed that the sale consideration received by the assessee as stated in the sale deed is the actual fair market price of the property in question - HELD THAT:- Despite objection raised by the assessee, the Assessing Officer did not proceed to determine the fair market value of the property in question as provided under section 50C(2) - Once the assessee has raised the objection against the adoption of deemed full value consideration in terms of section 50C of the Income Tax Act, the Assessing Officer is duty bound to refer the matter to the DDO for determination of the fair market value of the property in terms of section 50C(2) of the Income Tax Act. Since, the Assessing Officer has not taken any step to determine the fair market value therefore, in the facts and circumstances of the case, this issue of fair market value of the property in question is set aside to the record of the Assessing Officer to refer the same to the DVO, and then be decided as per law, after giving an opportunity of hearing to the assessee.
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