INCOME TAX ACT, 1961

Section 143(2)

Assessment - Validity - Notice under section 143(2) issued beyond the limitation period -

Assessee was a partnership firm engaged in the business of real estate. It filed its return of income under section 139. Return was processed under section 143(1) on 17-2-2013 and notice under section 143(2) was issued to the assessee on 17-10-2013 whereas the time period for issuance of notice under section 143(2) had expired on 30-9-2013. The assessee challenged validity of assessment order on the ground that notice was issued beyond the period of six months. Held: Notice under section 143(2) is a mandatory notice and is to be issued within the period prescribed under law. For the year under consideration, limitation period expired within six months from the end of the financial year in which the return of income was filed. In the present facts, the limitation period expired on 30-9-2013. Section 292BB contemplates situations of irregularities, wherein the notice was served to the assessee in time and in accordance with the provisions of the Act. In the present case, assessee did not receive notice in time. Accordingly, assessment order was bad in law.

Followed: Asstt. CIT & Anr. v. M/s. Hotel Blue Moon (2010) 321 ITR 362 (SC) : 2010 TaxPub(DT) 1434 (SC).

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2012-13

INCOME TAX ACT, 1961

Section 254

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