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2020 (12) TMI 525 - AT - Income TaxValidity of reopening of assessment - time limit for issue of notice u/s. 143(2) has not expired and regular assessment could have been made - Assessee had filed the return of income belatedly - HELD THAT:- In the light of the above judgment in the case of Smt. Suman vs. ITO [2017 (8) TMI 567 - BOMBAY HIGH COURT] it is abundantly clear that no reassessment proceedings can be initiated so long assessment proceedings on the basis of return of income filed by the assessee is pending. The assessment proceedings would seize to be pending either by passing an order u/s. 143(3) of the Act or by expiry of time to issue a notice u/s. 143(2) to complete the assessment proceedings u/s. 143(3) of the Act. So long as the above event, has not passed, the Assessing Officer cannot render the provision of section 143(2) of the Act redundant/otiose by issuing a notice for reopening u/s. 147/148 of the Act. Therefore, in our view, the reassessment proceedings initiated in the case of assessee under consideration is bad in law. In assessee's case under consideration the time limit to issue notice under section 143(2) was not expired therefore assessing officer cannot issue the notice under section 148 to make the reassessment under section 147 - we do not agree with the argument of ld DR to the effect that the Assessing Officer is free to initiate proceeding under section 147 and failure to take steps under section 143(3) will not render the Assessing Officer powerless to initiate reassessment proceedings under section 147 of the Act. In assessee's case the time available for issue of notice under section 143(2) of the Act is on or before 30.09.2014 and after 30.09.2014, the assessing officer cannot issue notice under section 143(2) of the Act to frame the assessment under section 143(3) - up to 30.09.2014, the assessing officer could have issued notice under section 143(2) of the Act to frame the assessment under section 143(3) of the Act and the assessing officer could have assessed all the income of the assessee including escaped income, thus there is no need to jump the queue and to issue notice under section 148 of the Act on 21.06.2014, [before the expiry of time limit under section 143(2)], that is, assessing officer should not have jumped the queue, as the time limit to issue notice under section 143(2) is available before the assessing officer, up to 30.09.2014. In the assessee's case under consideration, the assessing officer jumped the queue and issued notice under section 148 of the Act within the time limit available to issue notice under section 143(2) of the Act and such action of the assessing officer is not acceptable - Decided in favour of assessee.
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