TMI Blog2005 (8) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... n the proceedings before the Assessing Officer there was acquiescence and waiver on the part of the assessee which would result in the assessment being valid in law and the Commissioner of Income-tax (Appeals) and the Tribunal were wrong in reading the provisions as being mandatory so as to treat the assessment void ab initio. - revnue appeal dismissed - - - - - Dated:- 31-8-2005 - Judge(s) : D. A. MEHTA., MS. H. N. DEVANI. JUDGMENT The judgment of the court was delivered by D. A. MEHTA J.-The appellant-Revenue has proposed the following two questions stated to arise out of order dated March 11, 2004, made by the Income-tax Appellate Tribunal, Ahmedabad Bench "B". "(1) Whether the hon'ble Income-tax Appellate Tribunal was right in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h in which the return was filed the assessment was void ab initio. It was urged by him that the assessee had not challenged the issuance of notice under section 143(2) of the Act as being barred by limitation before the Assessing Officer and had raised the challenge before the Commissioner (Appeals) only for the first time. It was further submitted that the assessee having participated in the proceedings before the Assessing Officer there was acquiescence and waiver on the part of the assessee which would result in the assessment being valid in law and the Commissioner of Income-tax (Appeals) and the Tribunal were wrong in reading the provisions as being mandatory so as to treat the assessment void ab initio. The contention that the chall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was originally introduced by the Direct Tax Laws (Amendment) Act, 1989 with effect from April 1, 1989. The issuance of notice under section 143(2) of the Act is in the course of assessment in the third mode, namely, scrutiny assessment. Section 143(2) of the Act requires that where a return has been made by an assessee, if the Assessing Officer considers it necessary or expedient to ensure that the assessee has not understated the income, or has not computed excessive loss, or has not underpaid tax in any manner, he shall serve on the assessee a notice requiring him either to attend his office, or to produce, or cause to be produced there, any evidence on which the assessee may rely in support of the return. Therefore, the language of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... furnished, whichever is later. This means that the Department must serve the said notice on the assessee within this period, if a case is picked up for scrutiny. It follows that if an assessee, after furnishing the return of income does not receive a notice under section 143(2) from the Department within the aforesaid period, he can take it that the return filed by him has become final and no scrutiny proceedings are to be started in respect of that return". Originally the period of limitation was provided as "during the financial year in which the return is furnished" or within six months from the end of the month in which the return is furnished. By the Finance (No.2) Act, 1991, the proviso was substituted by the present proviso extend ..... X X X X Extracts X X X X X X X X Extracts X X X X
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