Pr. CIT v. Nexus Software Ltd.

INCOME TAX ACT, 1961

--Assessment--Notice under section 143(2)Service of notice after prescribed period of limitation----Where notice under section 143(2) was not served upon the assessee within the prescribed period of limitation provided under section 143(2), assessment order passed under section 143(3) was required to be set aside.--Assessee's case was selected for scrutiny and accordingly notice under section 143(2) was issued on 29-9-2009. However, notice dated 29-9-2009 was dispatched to the postal authority for speed post on 30-9-2009. Nothing was on record and even otherwise it was not the case on behalf of the revenue that the notice issued on 29-9-2009, which was given to the postal authority on 30-9-2009, was served upon the assessee on or before 30-9-2009. Even the said notice was served upon the assessee or was also not on record as the acknowledgment of the notice under section 143(2) was not available. Hence, assessee raised objection before AO that the notice under section 143(2) was not validly served within the statutory limits, and therefore, it was requested not to proceed further with the notice under section 143(2). However, AO did not accept the same and passed the scrutiny assessment order under section 143(3). Held: Nothing was on record and/or there was no acknowledgment received on record to show and/or suggest that in fact the notice under section 143(2) dated 29-9-2009 was served upon the assessee. Under the circumstances, notice under section 143(2) was not served upon the assessee within the prescribed period of limitation provided under section 143(2), i.e., on or before 30-9-2009. Hence, assessment order passed under section 143(3) was set aside. On the ground that the notice under section 143(2) was not been served upon the assessee within the prescribed period of limitation provided under section 143(2).