TMI Blog2004 (6) TMI 308X X X X Extracts X X X X X X X X Extracts X X X X ..... under s. 143(2) beyond statutory time allowed were invalid in law. The facts of the case are that the assessee had filed returns of income on 20th June, 1988, 2nd Sept., 1992 and 30th Nov., 1993 for the asst. yrs. 1988-89, 1992-93 and 1993-94 declaring therein income of Rs. 20,335, Rs. 41,350 and Rs. 56,200 and agricultural income of Rs. 5,27,092, Rs. 3,34,552 and Rs. 1,45,546 respectively. These returns were accepted under s. 143(1)(a). Thereafter the AO issued notices under s. 148 for all the assessment years on 23rd March, 1995. In response to such notices, the assessee submitted that the returns filed earlier may be treated to have been filed in response to notices under s. 148. Thereafter, the AO issued notices under s. 142(1) on 4th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under s. 143(2) and served upon the appellant beyond the statutory period of 12 months as provided under s. 143(3), the assessment framed by the AO was void and illegal. I have also given careful thought to the reasoning of the AO for holding that he had correctly followed the provisions of law for completing the assessment under s. 143(3) and also his reasoning that since assessment was completed by initiating action under s. 148, such statutory limit of serving notice under s. 143(2) within stipulated period did not apply to the case of the appellant. After due consideration, I find that since the assessment proceedings were completed on the basis of notice under s. 143(2) and the assessment was made under s. 143(3) there is no distinctio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned counsel for the assessee, on the other hand, heavily relied on the orders of the CIT(A) and reiterated the submissions made before the authorities below. He submitted that the provisions of s. 147 were amended w.e.f. 1st April, 1989. However, the amended provisions are only procedural in nature. Therefore, the same would apply with retrospective effect. In this regard he referred to the CBDT s Circular reported in (1990) 182 ITR (St) 33. He particularly drew our attention to para 7.13 of the circular where the Board has clarified that these amendments shall come into force w.e.f. 1st April, 1989 and since these are procedural, the same shall have retrospective effect. Thus, he contended that the amended provisions being procedural i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hin the prescribed statutory period. 6. We have heard both the parties and given our thoughtful consideration to the rival submissions with reference to facts, evidence and material on record. From the facts discussed above, it is obvious that the notices under s. 143(2) for all the assessment years have been issued beyond a period of 12 months from the date of filing the returns in response to notices issued under s. 148. As per the proviso to s. 143(2), such notices could have been issued only within a period of 12 months from the end of the month in which the return was filed. As mentioned above, amended provisions of s. 147 came into effect w.e.f. 1st April, 1989. However explanatory notes referred to in the CBDT Circular clearly show ..... X X X X Extracts X X X X X X X X Extracts X X X X
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