INCOME TAX ACT, 1961

Section 147

Reassessment - Validity - No notice under section 143(2) -

Assessee filed return of income declaring certain amount of loss. AO passed order under section 143(3) by assessing total loss after making some addition. Subsequently, notice under section 148 was issued but the same was not served on the assessee. Assessee submitted before the AO to treat original return as return filed in response to notice under section 148. Accordingly, the AO passed order under section 147 by making certain additions. Assessee contended that since it was not served notice under section 143(2), which was an incurable defect, the reassessment proceedings would be considered as void. Held: As per section 148, a return filed under section 148 is to be treated as one under section 139, proviso to section 143(2) also applies to a return filed in response to notice under section 148 and no assessment can be made, if the notice under section 143(2) is not served within the time as prescribed by the proviso to section 143(2). Further it is settled principle of law that subsequent to statement of assessee in response to notice under section 148 to treat the original return filed as a return filed pursuant to a notice under section 148, the AO's failure to issue notice under section 143(2) invalidates the order of reassessment. Hence, the impugned order of reassessment was considered as null and void for want of notice under section 143(2).

Relied:Pr. CIT v. Shri Jai Shiv Shankar Traders Pvt. Ltd. (2016) 383 ITR 448 (Del): 2015 TaxPub(DT) 4975 (Del-HC)

REFERRED : Alpine Electronics Asia Pte Ltd. v. DGIT & Ors. (2012) 341 ITR 247 (Del): 2012 TaxPub(DT) 0891 (Del-HC) ITO v. Tilak Raj Satija ITA No. 391/Del/2010, Order, dt. 14-8-2013]

FAVOUR : In assessee's favour

A.Y. : 2005-06

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