INCOME TAX ACT, 1961

Section 147

Reassessment - Validity - Notice under section 143(2) issued beyond limitation - Assessee did not file any return of income in response to notice under section 148

Assessee challenged validity of reassessment order framed by AO under section 143(3) read with section 147. She submitted that the AO issued notice under section 143(2) on 29-6-2010, which was beyond the limitation and therefore, the re-assessment framed by the AO was invalid. Revenue pointed out that the AO issued notice under section 148 on 7-1-2010 and the assessee did not file any return of income in response to the said notice. Therefore, the notice under section 143(2) was not required to be issued when the assessee did not file any return of income. Even otherwise the notice issued under section 143(2) dated 29-6-2010 was well within the period of limitation as the notice under section 148 was issued on 7-1-2010. Held: There was no dispute that AO issued notice under section 148 on 7-1-2010 and assessee did not file any return of income in response to said notice. Thus, there was no requirement of issuing any notice under section 143(2) by the AO and therefore, the notice issued by the AO under section 143(2) on 29-6-2010 could not be challenged on the ground of limitation. The issuance of notice under section 143(2) in absence of any return filed by the assessee would have no consequence. Hence, the reassessment framed under section 143(3) read with section 147 could not be challenged on the ground of limitation for notice under section 143(2).

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2008-09

INCOME TAX ACT, 1961

Section 148

SUBSCRIBE FOR FULL CONTENT