INCOME TAX ACT, 1961

Section 147

Reassessment - Validity - Issuance of section 148 notice before expiry of time-limit for issuing section 143(2) notice -

Assessee challenged validity of reassessment framed under section 147 on the ground that though AO had time as per Statute to issue notice under section 143(2) for scrutiny under section 143(3), AO did not issue notice under section 143(2), as required by the Statute, he, however, issued notice under section 148 for reopening of assessment under section 147. Held: No reassessment proceedings can be initiated so long assessment proceedings on the basis of return of income filed by assessee were pending. The assessment proceedings would cease to be pending either by passing of an order under section 143(3) or by expiry of time to issue a notice under section 143(2), to complete assessment under section 143(3). So long as the above event had not passed, AO could not render provision of section 143(2) redundant/otiose by issuing a notice for reopening of an assessment under section 147/148.

Followed:Suman W/o. Keshaorao Burde v. ITO ITA No. 72 of 2003, order dt. 12-7-2017 : 2017 TaxPub(DT) 3983 (Bom-HC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2012-13

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