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2019 (9) TMI 467

..... valid, the order passed u/s 263 cannot survive and it is also a nullity. No decision to the contrary has been cited. Since the assessment order in the present case was void ab initio for want of issuance of notice under section 143(2) the return filed by the assessee having been accepted, the revisional order passed on the said assessment order is also a nullity. We hold accordingly and the impugned order passed under section 263 of the Act is set aside and cancelled. As such, nothing further survives for adjudication. - IT(SS)A No.391/LKW/2017 - 6-9-2019 - Shri. A. D. Jain, Vice President And Shri T. S. Kapoor, Accountant Member For the Appellant : Shri Rakesh Garg, Advocate For the Respondent : Shri A. K. Bar, CIT (DR) ORDER PER A. D. JAI .....

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..... use even otherwise, no notice having been issued u/s. 143(2) while framing the assessment u/s. 143(3), which makes the order passed u/s. 143(3) without jurisdiction no variation could be made to the income returned, the order passed u/s.263 would be without jurisdiction bad in law and be quashed. 07. Because the return filed on 26.09.2013 u/s.139(1) having being accepted and there being no new tangible material the proceedings initiated u/s.148/147 are without jurisdiction, the order passed thereon is bad in law and consequently the impugned order passed by the Principal CIT (Central) u/s.263 is also bad in law and be quashed. 08. Because the re-assessment framed u/s. 147/143(3) dated 30.03.2015, is without jurisdiction in as much as no &qu .....

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..... patent on record, are that a search and seizure operation under section 132 of the Act was conducted on 19/04/2012 at the various premises of M/s K C Pan Products (P) Ltd. Group of cases, including the premises of the assessee, in which, certain documents, assets, etc., were found and seized. Thereafter, the case of the assessee was centralized with the Dy. Commissioner of Income-tax, Central Circle-II, Kanpur and notice under section 153A of the Act was issued. In response to the notice under section 153A of the Act, the assessee furnished the return of income, declaring total income of ₹ 27,28,120/-. The Assessing Officer completed the assessment under section 153A/143(3) of the Act on 30/3/2015, assessing the total income of the a .....

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..... ource of the jewellery found in Lockers No. 12 & 14. The assessee explained the source of the jewellery in respect of locker No.12. However, no explanation was offered in respect of the jewellery found in locker No.14. Accordingly, the jewellery found in locker No.14, valued at ₹ 6,64,327/, remained unexplained and needed verification. 10. Vide the impugned order, the ld. CIT held the assessment order to be erroneous and prejudicial to the interests of the Revenue. The ld. CIT, as such, set aside the entire assessment order, holding as follows:- In view of the above discussion, it is clear that the order dated 30.03.2015 passed by the Assessing Officer under section 153A/143(3) for the A.Y. 2013-14 is erroneous in so far as it is .....

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..... ent of law. With regard to jewellery found in locker No. 14, the assessee tried to explain the same by stating that the jewellery was received from father on 29.04.1977 as gift and the same was converted into new jewellery. The assessee's submissions have been considered. However, without documentary evidences viz. TDS certificates, confirmed copies of accounts from the persons to whom interest has been paid, etc., the genuineness of the assess. contention remained unverified. The assessee has further submitted that disallowance u/s 40a(la) of the Act is not attracted once the recipient of income has paid tax or declares his income to be below the taxable limit, recovery of tax from the payer may not be in consonance with the intent of .....

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..... the assessee is right in contending that since no notice under section 143(2) of the Act was issued, the assessment order dated 30/3/2015, passed after issuance of notice under section 148 (APB-137) dated 17/11/2014, is null and void and that once it is so, the proceedings under section 263 of the Act are also invalid. 12. A perusal of the assessment order shows that the Assessing Officer noted in para 2 thereof, inter alia, that the case was to be completed under scrutiny as per the provisions of section 153A(b) of the Act; that the time to issue notice under section 143(2) of the Act had already expired; and that therefore, a notice under section 148 of the Act (erroneously mentioned as section 143(2) of the Act) dated 17/11/2014 was issu .....

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..... held that since the assessment order had been passed on a non-existent entity, i.e., a company which stood merged with another company, the assessment order was a nullity and the revisional order passed in pursuance thereof was also a nullity. 16. Thus, the ratio of these cases is that where the assessment order forming the basis of proceedings under section 263 of the Act are themselves invalid, the order passed under section 263 of the Act cannot survive and it is also a nullity. No decision to the contrary has been cited. 17. As observed hereinabove, since the assessment order in the present case was void ab initio for want of issuance of notice under section 143(2) of the Act, the return filed by the assessee having been accepted, the r .....

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