INCOME TAX ACT, 1961

Section 143(2)

Assessment - Notice under section 143(2) - Validity - Bar of limitation--Defects in return filed under section 139(1) removed as per direction of AO

Assessee filed its return of income under sub-section (1) of section 139 on 29-11-2016. Since return was defective, assessee was called upon to remove such defects, which came to be removed on 19-7-2017, that is, within time allowed by AO. Later on, AO issued notice under section 143(2) on 11-8-2018. Assessee by way of writ petition challenged the notice as time-barred. Held: Upon defects being removed, return related back to date of filing of the original return, that is, 29-11-2016 and consequently, limitation for issuance of notice under sub-section (2) of section 143 was 30-9-2017, viz. six months from the end of the financial year in which return under sub-section (1) of section 139 came to be filed. It is an admitted position that impugned notice under sub-section (2) of section 143 was issued on 11-8-2018, which was much beyond the period of limitation for issuance of such notice as envisaged under that sub-section and, therefore, impugned notice, was clearly barred by limitation and could not be sustained.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2016-17

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