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TMI Blog2023 (6) TMI 1378X X X X Extracts X X X X X X X X Extracts X X X X ..... Amritsar, [in brevity ' the AO'] order passed u/s 144 of the Act. 2. The assessee has taken the following grounds: That the order passed u/s 250(6)of the Income Tax Act, is bad in law and against the facts of the case. 2. That the CIT(A) has erred in not appreciating that the AO had erred in law in making assessment without issuing notice u/s 143(2). 3. That the Ld.CIT(Appeals) has erred in law and in facts in sustaining the order passed by the ITO Ward 5(4) in which the Ld. AO has assessed the total income of the assessee at Rs. 49210360/- as against returned income of Rs. 426860 by making an addition of Rs. 34699498/- on account of credit entries appearing in bank account statement and Rs. 14084000/- on account of cash deposited i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eposited and credit entries by invoking section 69A. That the provisions of section 69A can be invoked only when whole of such alleged money, bullion, jewellery, or valuable article has escaped assessment or remains unexplained. 10. That the appellant craves leave to add or amend the grounds of appeal before the appeal is heard and disposed off." 3. The appeal was filed with a delay of 71 days. The assessee filed a condonation petition and placed that due to medical emergency the assessee was unable to submit the appeal within the time. The relevant short delay is duly condoned with the consent of ld. DR. Accordingly, the delay for 71 days is condoned. 4. The assessee's case was taken for hearing by rejecting the adjournment petition of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... India in the case of National Thermal Power Co. Ltd. v Commissioner of Income-tax, [1998] 97 Taxman 358 (SC). The ld. AR for the assessee placed the following dates and events related to proof of non-issuance of notice u/s 143(2) by the revenue which is duly extracted as below:- 6.2 The ld. AR relied on the following orders by challenging the jurisdiction of assessing authority related non-issuance of notice u/s 143(2) which caused assessment bad in law. Here, we placed the following judicial rulings as follow:- 6.2.1 Hon'ble Supreme Court of India Assistant Commissioner of Income-tax v. S.K. Industries, [2022] 141 taxmann.com 569 (SC) "Section 143, read with section 144. of the Income-tax Act, 1961 - Assessment - Issue of noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... restrict the scope and meaning of the expression 'so far as may be apply'. In our view, where the Assessing Officer in repudiation of the return filed under section 158BC(a) proceeds to make an enquiry, he has necessarily to follow the provisions of section 142, sub-sections (2) and (3) of section 143. 17. Section 158BH provides for application of the other provisions of the Act. It reads : "Save as otherwise provided in this Chapter, all the other provisions of this Act shall apply to assessment made under this Chapter". This is an enabling provision, which makes all the provisions of the Act, save as otherwise provided, applicable for proceedings for block assessment. The provisions which are specifically included are those whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be produced before the Assessing Officer any evidence on which the assessee may rely in support of the return: Provided that no notice under this sub-section shall be served on the assessee after the expiry of six months from the end of the financial year in which the return is furnished.]" 7. In Asstt. CIT v. Hotel Blue Moon [2010] 188 Taxman 113/321 ITR 362, on the question as to whether issue of notice under Section 143 (2) of the Act within the prescribed time for the purpose of block assessment under chapter- XIV B of the Act is mandatory for assessing undisclosed income detected during search conduct under Section 132 of the Act, their lordships were pleased to hold : "15 Omission on the part of the assessing authority to iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act is not sustainable. Hence, the ground raised by the assessee is allowed. Accordingly, the assessment for impugned assessment year 2017-18 is bad in law and liable to be quashed. The addition amount of Rs. 4,87,83,498/- is deleted.
As this appeal has been decided on the short ground of jurisdiction in the assessment for non-issuance of notice U/s 143(2)so the Ground no-2 is fully allowed in favour of the assessee. We see no need to deal with the merits of the additions and the issue involved in other grounds. That aspect of the matter is academic as of now.
9. In the result, the appeal of the assessee bearing ITA No. 35/Asr/2023 is allowed.
Order pronounced in the open court on 14.06.2023. X X X X Extracts X X X X X X X X Extracts X X X X
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