Tribunal upholds CIT(A) decision on invalid assessment notice, deems Revenue's appeal dismissed.

The tribunal upheld the CIT(A) order quashing the assessment due to an invalid notice under section 143(2), dismissing the Revenue's appeal and deeming the assessee's cross objection infructuous. The tribunal emphasized the mandatory nature of the provision and rejected the Revenue's arguments regarding the statutory limitation and applicability of section 158BC as a complete code. The proceedings concluded on 31st July 2015 in Ahmedabad.

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Issues:
Validity of notice served under section 143(2) for quashing the assessment order.

Analysis:
1. The appeal and cross objection for the assessment years 1990-91 to 1999-00 arose from the order of CIT(A)-II, Surat, dated 24.5.2010 under section 158BC(c) of the Income Tax Act, 1961. The Revenue's main ground challenged the validity of the notice issued under section 143(2) for quashing the assessment order dated 31.7.2001. The assessee's cross objection supported the CIT(A) order.

2. The assessee, an individual, was assessed after a search at his premises on 29.7.1999, leading to a section 158BC notice dated 15.10.1999. The assessee admitted undisclosed income in the return filed on 25.11.1999. The assessment completed on 31.7.2001 included additions for the block period from 1990-91 to 29.7.1999.

3. The assessee contended that the section 142(3) notice was not served within the prescribed time, rendering the assessment invalid. The CIT(A) accepted this argument based on the delay in serving the notice under section 143(2), citing the Hotel Blue Moon case and other judicial precedents.

4. The Revenue argued that the notice was served within the statutory limitation of one year from the end of the month of filing the return, emphasizing the distinction between "issued" and "served." The tribunal rejected this argument, interpreting the tax statute's expressions literally and emphasizing the mandatory nature of the provision.

5. The Revenue's second contention that section 158BC is a complete code where section 143(2) does not apply was also dismissed. The tribunal held that section 158BC(b) mandates following the procedures of section 158BB, 142, and 143(2) and (3). Consequently, the CIT(A) order quashing the assessment due to the invalid notice under section 143(2) was upheld, rendering the cross objection moot.

6. The Revenue's appeal was dismissed, and the assessee's cross objection was deemed infructuous. The tribunal affirmed the CIT(A) order and concluded the proceedings on 31st July 2015 in Ahmedabad.

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