INCOME TAX ACT, 1961

Section 143(2) & Section 143(3), 292BB

Assessment - Validity - Non-issuance of section 143(2) notice - Applicability of section 292BB

In response to notice under section 148 assessee, by a letter dt. 19-7-2010, had to consider earlier return of income filed by it as the return filed in response to the notice. After assessee addressed the above letter no notice under section 143(2) was issued. The notice under section 143(2) had been issued to assessee on 12-3-2010 only, that is, prior to the communication dt. 19-7-2010 of the assessee, informing the AO to treat the earlier return filed by it as the return filed in response to the notice under section 148. Nonetheless, assessment proceedings proceeded further pursuant to notice under section 148 and came to be concluded by an assessment Order, passed under section 143(3) read with section 147. Held: After filing of the return of income, unless a notice under section 143(2) is issued to assessee, he would have no means of knowing as to whether or not AO has accepted the return of income as filed by him. Accordingly, non-issuance of notice under section 143(2) was not a mere procedural irregularity, the same could not be cured under section 292BB and hence, assessment order passed without issuance of notice under section 143(2) was invalid.

Followed:Asstt. CIT & Anr. v. Hotel Blue Moon (2010) 3 SCC 259 : 2010 TaxPub(DT) 1434 (SC). Distinguished:Venkatesan Raghuram Prasad v. ITO (2018) 94 taxmann.com 249 (Mad) : 2018 TaxPub(DT) 3444 (Mad-HC) and CIT v. Ram Narain Bansal (2011) 202 Taxman 213 : 2012 TaxPub(DT) 0412 (P&H-HC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2005-06

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