INCOME TAX ACT, 1961

Section 147

Reassessment - Validity - Non-issuance of notice under section 143(2) -

AO passed reassessment order under section 147, making addition on account of unexplained cash credits. Assessee challenged the notice under section 148 and consequent reassessment order on account of non-issuance of notice under section 143(2). He also challenged the addition in dispute on merits. CIT(A) rejected the ground of the assessee regarding validity of notice under section 148 alleging that the assessee could not explain whether any objection on the said ground was raised during the assessment proceedings and further no additional ground was filed before him by the assessee. Held: Both the parties agreed that issue relating to non-issuance of notice under section 143(2) is to be set aside to the CIT(A) to decide the same as per law. Keeping in view the consent of both the parties as well as in interest of justice, the issue relating to non-issuance of notice under section 143(2) was remanded to the CIT(A) and he was directed to decide the same afresh after examining assessment records, and after giving full opportunity of being heard to the assessee. Even otherwise, the CIT(A) had not passed speaking order on merits also and had not decided the addition in dispute in a summary manner. Accordingly, the CIT(A) was also directed to decide the case of the assessee on merits afresh.

REFERRED :

FAVOUR : Matter remanded

A.Y. : 2004-05

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