The Tax Publishers2020 TaxPub(DT) 0180 (Visakhapatnam-Trib)

INCOME TAX ACT, 1961

Section 143(2) Section 143(3)

Issuance of notice under section 143(2) pre-supposes existence of valid return of income. In the instant case, notice issued under section 143(2) by AO in respect of invalid return could not be taken cognizance of and separate notice was required to be issued for initiation of assessment proceedings in response to subsequent valid return filed by assessee. As there was no notice issued under section 143(2) by AO subsequent to filing of valid return of income, assessment made under section 143(3) was liable to be cancelled.

Assessment - Validity - Non-issuance of section 143(2) notice subsequent to filing of valid return by assessee - AO seeking to take cognizance of notice issued earlier in pursuance of assessee's earlier return considered as invalid

AO issued notice under section 148 on 15-2-2017, in response to which assessee had filed return of income on 3-4-2017. Subsequently, AO issued notice under section 143(2) on 10-4-2017 in resepct of return filed on 3-4-2017, department treated the return as invalid. Assessee filed second return of income on 27-6-2017 which was considered as valid and AO completed assessment under section 143(3). Assessee challenged validity of assessment framed on the ground of non-issuance of notice under section 143(2).Held: Issuance of notice under section 143(2) pre supposes existence of valid return of income. In the instant case, section 143(2) notice issued in respect of invalid return could not be taken cognizance of and separate notice was required to be issued for initiation of assessment proceedings in response to subsequent valid return filed by assessee. As there was no notice issued under section 143(2) by AO subsequent to filing of valid return of income, assessment made under section 143(3) was liable to be cancelled.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2016-17



IN THE ITAT, VISAKHAPATNAM BENCH

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