TMI Blog2019 (7) TMI 1875X X X X Extracts X X X X X X X X Extracts X X X X ..... return is furnished. Therefore, in this case, since the assessee pursuant to the notice u/s. 147/148 of the Act dated 21.01.2013 had requested the AO to treat the original return of income filed u/s. 139 of the Act as the return in response to the notice u/s. 147/148 vide letter dated 19.02.2013 means the AO had to issue 143(2) notice before 31.08.2013. Admittedly, the 143(2) notice has been issued on 12.12.2013 and, therefore, the action of the AO is barred by the limitation prescribed by the 1st proviso to sec. 143(2) of the Act and the Hon ble Supreme Court in the case of Hotel Blue Moon [ 2010 (2) TMI 1 - SUPREME COURT] has held that issuance of notice u/s 143(2) is mandatory for scrutiny assessment even in cases of assessments afte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tory time after the return was filed u/s.147, the objection was raised by the assessee and, therefore, notice u/s.143(2) issued after expiry of statutory time cannot validate the assessment. 2. Whether on the facts and in the circumstances of the case and in law, the Ld.CIT(A) has erred in considering the objection raised by the AO that no such objection was raised during the scrutiny proceedings by the assessee. 3. Whether on the facts and in the circumstances of the case and in law, the Ld.CIT(A) has erred in allowing the ground of the assessee regarding initiation of proceedings u/s.147 of the Act. Whereas in this case the AO had reason to believe (based on the evidence available) that the income i.e. ₹ 12,80,02,205/- chargea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed an objection regarding reopening assessment vide letter dated 05.12.2013 which was received in his office (A.O) on 09.12.2013. According to AO, the objection of the assessee was disposed of by a speaking order dated 12.12.2013 and thereafter he issued notice u/s. 143(2) and 142(1) of the Act on 12.12.2013. The main grievance of the assessee was that sec. 143(2) notice of the AO was issued after six months from the end of the month on which the return of income was filed though the assessee had written letter asking the AO to treat the original return of income as the return of income pursuant to sec. 147/148 notice. According to assessee, the notice should have been issued before 31.08.2013 and admittedly, the notice u/s. 143(2) was issu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed u/s. 139 of the Act as return in response to notice u/s. 148/147 of the Act. As per sec. 143(2), where a return has been furnished u/s. 139 or in response to notice under sub-section(1) of sec. 142, the AO considers it necessary or expedient to ensure that the assessee has not understated the income or has not computed excessive loss or has not under paid the tax in any manner, shall serve on the assessee a notice requiring him on a date to be specified therein either to attend the office of the AO or caused to be produced before the AO any evidence on which the assessee may rely in support of the return. The proviso to sec. 143(2) states that no notice under this sub-section shall be served on the assessee after the expiry of six mon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting the AO to treat the original return as the return of income pursuant to the 147/148 notice. For that we rely on the judgment of the Hon ble Calcutta High Court in the case of Iqbal Singh Atwal Vs. CIT (1984) 147 ITR 599 (Cal) and Hon ble Delhi High Court in the case of Pr. CIT Vs. Shri Jai Shiv Shankar Traders Pvt. Ltd. (2016) 383 ITR 448 (Del.). Therefore, the notice issued by A.O u/s 143(2) dated 12.12.2013 is hit by the 1st Proviso to section 143(2) of the Act and therefore the A.O had no jurisdiction to issue notice u/s 143(2) after 31.08.2013 and therefore the issuance of notice u/s 143(2) dated 12.12.2013 and all subsequent action is null in the eyes of the law and therefore we do not find any merit in the appeal of the revenue a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
