Appeal successful as notice served beyond IT Act period invalidated. Assessments quashed for 2007-08.

The appeal challenged the validity of a notice served under section 143(2) of the IT Act beyond the statutory period. The CIT(A) dismissed the appeal, relying on the amended provision of section 143(2). However, the ITAT considered relevant provisions and precedent, noting the notice exceeded the 12-month period from the return filing. It was held that assessments are invalid if notices are served beyond the prescribed period, emphasizing the proviso's non-retrospective operation. Consequently, the assessment for the year 2007-08 was quashed, and the assessee's appeal was allowed.

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Issues involved:
Validity of notice u/s 143(2) of the IT Act served beyond the statutory period.

Summary:
The appeal was filed against the order of the CIT(A) for assessment year 2007-08, challenging the validity of the notice served on 30-09-2008. The appellant argued that the notice was invalid as it was served after the expiry of the statutory period. The CIT(A) dismissed the additional ground of appeal, citing the amended provision of section 143(2) of the IT Act. The appellant relied on various case laws to support their contention. The Hon'ble Gujarat High Court's decision in a similar case was also referenced.

The Hon'ble ITAT considered the relevant provisions of section 143(2) of the IT Act and the decision of the Hon'ble Gujarat High Court in a similar case. It was noted that the notice served on the assessee was beyond the 12-month period from the end of the month in which the return was filed. Referring to the proviso to section 143(2), it was concluded that the assessment would not be valid if the notice was served beyond the prescribed period. Citing a decision of the ITAT Delhi, it was emphasized that the proviso had no retrospective operation. Therefore, the assessment for the year 2007-08 was quashed, and the appeal of the assessee was allowed.

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