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2023 (4) TMI 635 - DELHI HIGH COURTAssessment u/s 153C - assessment order was set aside by the CIT-A on the ground that no incriminating material had been found against the respondent/assessee - assessment order in the second round was passed under Section 147 read with Section 144 - Non issue of notice under Section 143(2) - As argued based on the material found in the first round, reassessment proceedings could have been triggered by the AO, for the reason that the scheme of Section 153C and Section 147/148 are materially different - HELD THAT:- The assessment order in the second round was passed under Section 147 read with Section 144 of the Act. Section 144 of the Act concededly deals with the situation where inter alia, the assessee fails to file a return or fails to comply with all the terms of the notice issued under Section 142 or fails to comply with the direction issued under sub-section (2A) of Section 142 or fails to comply with the terms of the notice issued under Section 143(2) of the Act. As noted above, the record shows that the respondent/assessee’s return was in place. The respondent/assessee had taken the plea that the earlier return should be treated as a return in response to notice under Section 148 of the Act. AO to take recourse to Section 144 of the Act was completely uncalled. In our opinion, Section 144 of the Act was taken recourse to under a mistaken belief, or otherwise, that there was no return on record. Since a response was on record, undoubtedly, the AO was required to issue a notice under Section 143(2) of the Act and then proceed further in the matter, and perhaps thereafter, frame an assessment u/s 147 read with Section 144 of the Act. This was not done. We are of the view that order passed by the Tribunal does not call for any interference. No substantial question of law arises.
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