TMI Blog2022 (9) TMI 654X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 - CIT(A) has relied upon judicial decisions in this regard, therefore see no reason to interfere in the order of the ld.CIT(A) dismissing the assessee s ground for holding the assessment order passed, as has been invalid on the ground of insufficiency of material for forming the belief of escapement of income. As no notice under section 143(2) was issued, the assessment order passed was invalid - In the present case since no return has been filed by the assessee, we are in agreement with the ld.DR that no notice under section 143(2) of the Act was required to be issued to the assessee . The non issuance of notice u/s 143(2) of the Act in the present case where no return was filed by the assesee, does not render the reassessment proceedings as invalid ,we hold. This ground raised by the assessee is also dismissed. Addition to the salary income of the assessee and on account of unexplained cash credit under section 68 - As appellant has not filed any specific written submission either in the assessment proceedings or in the appellate proceedings, hence both the additions made are confirmed and related grounds of appeal are dismissed. Assessee appeal dismissed. - I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in his bank account in Dena Bank, Ahmedabad. During re-assessment proceedings, no explanation was filed by the assessee regarding source of such cash deposit. Accordingly, addition of Rs.11.51 lakhs was made to the income of the assessee under section 68 of the Act. The AO also made addition of salary income of Rs.4,94,820/-, based upon income shown as salary in the return for the preceding assessment year i.e. Asst.Year 2010-011. 5. Before the ld.CIT(A), the assessee raised several grounds, including grounds challenging validity of the assessment framed under section 147 of the Act as also on the merits of the case, which were all dismissed by the ld.CIT(A), in turn dismissing the assessee s appeal. 6. Aggrieved with the order of the ld.CIT(A), the assessee has now come up in appeal before us, raising the following effective grounds of appeal: 1. The ld.CIT(A) erred in law and on facts in dismissing the appeal of the appellant. 2. The learned Commissioner of Income-tax (Appeals) erred in law and on facts in upholding the re-assessment proceedings even though on record there was no material to have reasonable belief of escapement of income. Further, the notice u/s 14 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt has argued that notice of reassessment is not served on legal representative and on the date of issuance of notice, appellant had already expired hence such reassessment is bad in law. The appellant has relied upon various decisions and provisions of the Act being section 159 of the Act and contended that such reassessment order need to be quashed. The appellant has relied upon decision of Hon'ble Madras High court in the case of Alamelu Veerappan Vs ITO 95 taxman.com 155 and contended that Notice issued in name of dead person is not enforceable in law. It is pertinent to note that in said case, the court at para 3 has observed that * The petitioner is the wife of the said Mr.S.Veerappan, who died on 26.1.2010 and this fact is not disputed by the respondent. The petitioner claims to be a home maker and is living with the support of her two daughters along with mother in law. The petitioner received a notice dated 30.3.2017 addressed to her late husband - the said Mr.S.Veerappan. In the said notice, it was stated that certain income of the said Mr.S.Veerappan escaped assessment for the assessment year 2010-11 and that the respondent proposed to re-assess the income for the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of law in this regard, and applying it to the facts of the case at hand. In the absence of any other decision, either of the jurisdictional High Court in this regard being brought to our notice, or the Hon ble Apex Court, we see no reason in the order of the ld.CIT(A) dismissing the assessee s argument of the assessment order being invalid since notice under section 148 was served on a deceased assessee. 11. With regard to the next argument that there being no material to form a belief of escapement of income, and therefore, reassessment proceedings being bad in law, I find that this issue has been dealt with by the Ld. CIT(A) at para 5.4 of the order as under: 5.4 So far as merits of the case is concerned, appellant has objected additions on the ground that reassessment notice is based upon vague reasons and there is no formation of belief of escapement of income. On careful consideration of reasons recorded reproduced in assessment order, AO was having information that appellant has not filed any. return of income and there is cash deposit of Rs 11,51,000. The AO has also mentioned that before issuing notice u/s 148 of the Act, AO has issued letter dated 12/10/2017 fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing Officer to treat return of income filed as return in response to notice under section 147 - Whether, on facts, it could not be said that there was full and true disclosure made by assessee pertaining to transactions with SN and; therefore, impugned reassessment proceeding was justified - Held, yes [Paras 17, 20 and 21] [In favour of revenue] The court in above case held that where reassessment proceedings were initiated against assessee on ground that assessee had advanced several crores of rupees to a party but source of such amount was not explained, since assessee had not filed balance sheet or statement of affairs related to such advance, impugned reassessment proceedings were justified. In the present case, it is undisputed facts that appellant has made cash deposits in bank account for Rs.11,51,000 and he has not filed return of income prior to issue of notice u/s 148 of the Act hence AO cannot verify whether credits in bank account represent income or not. In above case, the court has held that for explaining source, material evidence is filing of annual account whereas in present case, cash is deposited and unless, appellant has filed return of income, AO cann ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 143(2) of the Act, the purpose of which is to assume jurisdiction to assess income of the assessee as returned in his return of income. 15. Relevant provisions of law were considered by me and I find no infirmity in the argument of the Ld.DR . As per law jurisdiction to frame reassessment u/s 147 of the Act is assumed by issuing notice u/s section 148 of the Act requiring assesses to file return in response. And to such returns, the provisions of law apply, treating the returns as filed u/s 139 of the Act. To check the correctness of returns filed u/s 139 of the Act , notice u/s 143(2) of the Act is required to be issued to assesses . Clearly therefore notice u/s 143(2) of the Act is to be issued only when return is filed by the assessee. 16. In the present case since no return has been filed by the assessee, we are in agreement with the ld.DR that no notice under section 143(2) of the Act was required to be issued to the assessee . The non issuance of notice u/s 143(2) of the Act in the present case where no return was filed by the assesee, does not render the reassessment proceedings as invalid ,we hold. This ground raised by the assessee is also dismissed. Grou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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