INCOME TAX ACT, 1961

Section 143(3)

Assessment - Validity - Non-issue of notice under section 143(2) in block assessment -

A search was conducted in assessee's premises, pursuant to which a notice was issued under section 158BC to assessee seeking to assess the undisclosed income by initiating proceedings under provisions of Chapter XIV-B. Assessee contended that non-issuance of notice under section 143(3) vitiated assessment undertaken under special procedure under Chapter XIV-B. CIT(A) and Tribunal allowed the contention of assessee. Held: The case of assessee was covered by decision of the Apex Court in case of CIT v. Hotel Blue Moon [(2010) 321 ITR 362 (SC) : 2010 TaxPub(DT) 1434 (SC)] as AO did not issue notice as contemplated under section 143(2) in block assessment proceedings under section 158BC, which was mandatory and non-service thereof was fatal. Therefore, assessment made in present matter would nevertheless stand vitiated for want of mandatory notice under section 143(2).

REFERRED : Asstt. CIT & Anr. v. Hotel Blue Moon 2010 (3) SCC 259 : 2010 TaxPub(DT) 1434 (SC) Nawal Kishore & Sons Jewellers v. Dy. CIT (2003) 87 ITD 407-ITAT Lucknow : 2003 TaxPub(DT) 1382 (Luck-Trib)

FAVOUR : In assessee's favour

A.Y. :

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