INCOME TAX ACT, 1961

Section 148

Reassessment - Validity - No notice under section 143(2) issued to assessee -

A notice under section 143(2) was not issued/served on assessee after filing of a return of income in pursuance to a notice issued under section 148. Tribunal had, on last date of hearing, directed Department to produce or verify the assessment record for ascertaining the claim of assessee that statutory notice under section 143(2) was not issued to assessee for assessment years 2009-10 and 2010-11, before framing of assessment under section 143(3) r/w section 148. Assessee submitted that failure to issue statutory notice under section 143(2) would result in the entire proceedings, including any order of assessment being bad in law. Held: The admitted fact was that no notice under section 143(2) was issued to the assessee for both the assessment years 2009-10 and 2010-11. Only a notice under section 148 and section 143(2)(1) was issued. Assessment orders for both the assessment years are bad in law and have to be quashed by following the judgement of High Court in the case of Pr. CIT v. Oberoi Hotels Pvt. Ltd. [ITAT No. 152 of 2015, GA No. 3671 of 2015 judgement dated 22-6-2018 : 2018 TaxPub(DT) 3621 (Cal-HC)]. Therefore, appeal of assessee was allowed.

Followed:ACIT & Anr. v. Hotel Blue Moon 2010 TaxPub(DT) 1434 (SC) PCIT v. Oberoi Hotels Pvt. Ltd. [ITAT No. 152 of 2015, GA No. 3671 of 2015 judgement dated 22-6-2018] : 2018 TaxPub(DT) 3621 (Cal-HC) The Tinplate Company of India Limited v. DCIT & Ors. [WP No. 525 of 2017 Order, dated 6-9-2017] : 2017 TaxPub(DT) 4301 (Cal-HC) Ujjal Dutta v. ITO 2019 TaxPub(DT) 8184 (Kol-Trib)

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2009-10 & 2010-11

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