TMI Blog2011 (2) TMI 1515X X X X Extracts X X X X X X X X Extracts X X X X ..... For one unit, deduction u/s 80HHC of the I T Act was claimed and for the other unit, deduction u/s 10B of the Act was claimed. 2.1 Return of income was filed on 28.11.2003, which was accepted u/s 143(1) of the Act. Thereafter, notice u/s 148 was issued on 13/9/2004 and was duly served on the assessee. The assessee objected to the issuance of notice u/s 148 of the Act and also challenged the proposed additions that was sought to be made on merits. However, the assessee s objections/submissions were rejected and reassessment order was passed vide order dated 10/3/2006. As per the reassessment order, the taxable income of the assessee was determined at ₹ 29,02,267/-. In the reassessment, the A.O. had made the following changes in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t from issue of notice u/s 148 of the Act being not present, the notice issued was bad in law and all consequential proceedings also being bad in law are liable to be quashed. ii) The learned CIT(A) has erred in confirming the reopening of the assessment. The learned CIT(A) has also erred in holding at para 3.6 that AO was required to issue notice u/s 143(2) of the Act before 1/6/2003. Such finding being against the fact of the case is to be quashed. The CIT(A) has further erred in holding in para 3.9 that notice u/s 143(2) could not be issued after 31.3.2004. Such finding being bad in law and on facts requires to be quashed. iii) The learned CIT(A) has also erred in not deciding on the objections of the appellant that objections for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reassessment. We shall consider first the jurisdictional aspect. The short question for consideration is whether proceedings u/s 147 can be initiated or not when time for issuance of notice u/s 143(2) has not expired. In the instant case, the assessee has filed the return of income on 28/11/2003. The same was processed u/s 143(1) on 23.3.2004. Time for issuing notice u/s 143(2) of the Act was available upto 30/11/2004 by virtue of proviso to section 143(2)(ii). Notice u/s 148 was issued on 13/9/2004 before time available for issuing notice u/s 143(2) had expired. 9.1 Chapter XIV of the Act deals with the procedure of the assessment. Section 139 to 140A deal with the filing of return and matters connected with the return. Sections 142 to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above. Therefore, the order dated 30/3/2006 passed u/s 143(3) read with section 147 was not valid. 9.2 In taking the above view, we are fortified by the following judgements of Hon ble Madras High Court and also the order of the Tribunal:- CIT v TCP Ltd. 323 ITR 346 (Mad.); CIT v Pachayappan (K.M.) 304 ITR 264 (Mad.); CIT v Qatalys Software Technologies Ltd. 308 ITR 249 (Mad.) Super Spinning Mills Ltd. v ACIT 3 ITR (Trib) 258 (Chennai). 9.3 The Hon ble High Court of Madras in the case of CIT v TCP Ltd. (Supra) has held as under:- That the Tribunal was right in holding that notice under section 148 of the Act could not be issued for making an assessment under section 147 of the Act, when time limit was available for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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