Tribunal allows appeal challenging tax assessment for 2004-05. Loan treatment as income, notice absence addressed.

The Tribunal allowed the appeal challenging the assessment order for the assessment year 2004-05 u/s 148 of the IT Act, 1961. The appellant's contentions regarding the validity of the assessment order and the treatment of a loan as taxable income were considered. An additional ground raised concerning the absence of notice u/s 143(2) was admitted as a legal issue. The Tribunal followed Supreme Court precedent, setting aside the additional ground for CIT(A) reconsideration and allowing the appeal for statistical purposes.

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Issues involved:
Challenging impugned order of Ld. CIT(A)-I, Nashik for assessment year 2004-05 u/s 148 of IT Act, 1961. Additional ground raised regarding absence of notice u/s 143(2) of Income Tax Act, 1961.

Issue 1: Validity of assessment order u/s 148:
Assessee challenged impugned assessment order as bad in law due to absence of conditions precedent for notice u/s 148. Contention that assessment is null, void ab initio, and without jurisdiction. Grounds raised regarding loan given to VISEA Trust Malad, Mumbai being "Income-chargeable to tax" under section 147. CIT(A) erred in holding loan as income of appellant under section 11(3)(a) despite evidences. Challenge to CIT(A) finding on interest u/s 234 B as mandatory when appellant income not taxable u/s 208.

Issue 2: Additional Ground - Notice u/s 143(2):
Assessee filed additional ground challenging assessment order u/s 143(3) r.w.s. 147 for absence of notice u/s 143(2). Legal ground raised for first time, citing decision in ACIT vs. Hotel Blue Moon. Tribunal admitted additional ground as purely legal, following precedent set by Supreme Court in National Thermal Power Company Ltd. case.

Judgment Summary:
The appeal was filed challenging the assessment order for the assessment year 2004-05 u/s 148 of the IT Act, 1961. The appellant raised multiple grounds questioning the validity of the assessment order, including the absence of conditions for notice u/s 148 and the treatment of a loan as income chargeable to tax. Additionally, an additional ground was raised regarding the absence of notice u/s 143(2) of the Income Tax Act, 1961. The Tribunal admitted the additional ground as a purely legal issue, following the precedent set by the Supreme Court. The Tribunal set aside the additional ground for further consideration by the CIT(A) and allowed the appeal for statistical purposes.

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