TMI Blog2014 (8) TMI 1188X X X X Extracts X X X X X X X X Extracts X X X X ..... s 139 of the It Act, 1961. Failure of an assessee to file the return u/s 139(1) of the IT Act, 1961 would give powers to the AO to issue a notice for filing return as set out in Sec.142(1) of the IT Act, 1961. Once an AO chose not to issue such notice but to proceed u/s148, the consequence mentioned therein has to follow. Once a return has been filed by the assessee pursuant to a notice u/s 148 of the IT Act, 1961, the clause that would apply to him is clause(c ) of sub-sec.(1) of Sec.144 of the IT Act, 1961. He goes out of the ambit of clause(a). For applying clause(c ), it is necessary that assessee should have failed to comply with the terms of notice issued under sec.143(2) of the IT Act, 1961 - Thus, it is clear that there was no f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee, a partnership firm, was running a marriage hall and also deriving rental income. However, he noted that no returns were filed for the impugned assessment years. Notices u/s 148 of the IT Act, 1961 was issued on 15-12-2009 and pursuant thereto assessee filed returns on 08-01-2010 declaring loss of ₹ 48,647/-, ₹ 43,358/- and ₹ 4,194/- respectively for assessment years 2005-06, 2006-07 2007-08. 3. In the computation of income filed by the assessee, assessee had shown rent received on letting out of shops and collections from renting out of a hall. Assessee had claimed remuneration of ₹ 50,000/- paid to partners as a deduction from such receipts. The AO put the assessee on notice that it had failed to fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng to him, returns were filed pursuant to notices under section 148 issued for the impugned assessment year on 15-12-2009. As per learned AR once such returns were filed there was no scope for applying first two limbs of sub-sec(1) of Sec.144 of the IT Act, 1961. The only limb that would be attracted was clause(c), but for attracting this limb there should have been a failure to comply with a notice issued u/s 143(2) of the IT Act, 1961. Here, there was no such failure on the part of the assessee. 6. Reading sub-sec.5 of Sec.184, learned AR submitted that only when there was a failure of the nature mentioned in Sec.144 of the IT Act, 1961, disallowance of claim for deduction of payment of interest, salary, bonus commission or remun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y be specified in the notice, a return of his income or the income of any other person in respect of which he is assessable under this Act during the previous year corresponding to the relevant assessment year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed and the provisions of this Act shall, so far as may be apply accordingly as if such return were a return required to be furnished under section 139 . 9. A reading of the above clearly show that a return filed in pursuance of notice u/s 148 of the IT Act, 1961 is to be treated as a return required to be furnished u/s 139 of the It Act, 1961. Failure of an assessee to file the return u/s 139(1) of the IT A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have failed to comply with the terms of notice issued under sec.143(2) of the IT Act, 1961. At page-2 of the assessment order, the AO has mentioned as under; As per scrutiny guidelines issued by Board for financial year 2010-11, all cases where returns were filed in response to notice u/s 148 have to be selected for scrutiny and accordingly case was selected for scrutiny and notices u/s 143(2) and 142(1) were issued on 14-09-2011. In response to said notices, assessee's authorized representative Sri T.N.Ramadas, ITP, appeared and produced books of accounts, bank pass books and various details called for . 11. Thus, it is clear that there was no failure in complying with the notices issued u/s 143(2) of the IT Act, 196 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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