INCOME TAX ACT, 1961

Section 143(3)

Assessment - Validity - Notice issued after statutory limit -

Search and seizure action under section 132 was conducted on the assessee's premises and cash and jewellery was found from the possession of the family of the assessee. The jewellery was found as apportioned in the hands of the individuals by AO. After considering the submissions of the assessee, AO made additions on account of unexplained jewellery and unexplained cash.Held: It was pertinent to note that the notice under section 143(2) should have been issued before the statutory date but the same was issued after the statutory limit. This fact was not denied by department after going through the assessment records. Hence, the additional ground raised by the assessee was allowed. Thus, assessment order itself becomes null and void ab initio as the notice issued was not issued within the specified time. Since, assessment itself becomes nullity, there was no need to discuss the merits of the case.

Followed:Asstt. CIT v. Hotel Blue Moon (2010) 321 ITR 362 (SC) : 2010 TaxPub(DT) 1434 (SC), CIT v. Gujarat Foils Ltd. (2015) 377 ITR 324 (Guj) : 2015 TaxPub(DT) 3889 (Guj-HC), Dy. CIT v. Forum Sales (P.) Ltd. (2019) 76 ITR (Del-Trib.) (SN) 51 (Del), Pr. CIT v. Mita Gutgutia (2017) 395 ITR 526 (Del-HC) : 2017 TaxPub(DT) 1767 (Del-HC) and CIT v. Kabul Chawla (2016) 380 ITR 573 (Del-HC) : 2015 TaxPub(DT) 3486 (Del-HC). Relied:Chintels India Ltd. v. Dy. CIT (2017) 397 ITR 416 (Delhi) : 2017 TaxPub(DT) 1916 (Del-HC), Travencor Diagnostics (P.) Ltd. v. Asstt. CIT (2016) 74 Taxmann.com 239 (Ker-HC.) : 2016 TaxPub(DT) 4566 (Ker-HC) and Pr. CIT v. Nexus Software Ltd. (2017) 248 Taxman 243 (Guj-HC) : 2017 TaxPub(DT) 1261 (Guj-HC).