Flovel Energy (P) Ltd. v. ACIT

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The Tax Publishers2020 TaxPub(DT) 0570 (Del-Trib)

INCOME TAX ACT, 1961

Section 147 Section 143(2)

Once assessee had filed a letter stating that return filed earlier be treated as return in response to notice under section 148, the next stage was issuance of notice under section 143(2). It is an admitted fact that no notice under section 143(2) had been issued by revenue to assessee thereafter within stipulated time. Further, in response to query raised under RTI Act, it had been mentioned that no such letter was available on the record maintained in the office of the department. Assessee could not be penalized for mistake on the part of department or AO and re-assessment order was bad in law on account of non-issuance of notice under section 143(2).

Reassessment - Validity - No notice issued under section 143(2) -

Assessee challenged validity of reassessment proceedings under section 147 on the ground of non-issuance of notice under section 143(2). Held: Once assessee had filed a letter stating that return filed earlier be treated as return in response to notice under section 148, the next stage was issuance of notice under section 143(2). It is an admitted fact that no notice under section 143(2) had been issued by revenue to assessee thereafter within stipulated time. Further, in response to query raised under RTI Act, it had been mentioned that no such letter was available on the record maintained in the office of the department. Assessee could not be penalized for mistake on the part of department or AO and re-assessment order was bad in law on account of non-issuance of notice under section 143(2).

Relied:Alpine Electronics Asia Pvt. Ltd. (2012) 341 ITR 247 (Del) : 2012 TaxPub(DT) 891 (Del-HC) and Hotel Blue Moon (2010) 321 ITR 362 (SC) : 2010 TaxPub(DT) 1434 (SC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2011-12

IN THE ITAT, DELHI BENCH