Invalid Notice Under Section 148 Renders Reassessment Order Invalid. Appeal Allowed. The Tribunal held that the notice issued under section 148 before the expiry of the time period for issuing notice under section 143(2) was bad in law. ...
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Invalid Notice Under Section 148 Renders Reassessment Order Invalid. Appeal Allowed.
The Tribunal held that the notice issued under section 148 before the expiry of the time period for issuing notice under section 143(2) was bad in law. Consequently, the reassessment order based on such notice was also deemed invalid. The reassessment order under section 143(3)/147 was canceled, and the assessee's appeal was allowed. The other grounds of appeal regarding the merits of addition were dismissed as infructuous. The order was pronounced in open court on 8/11/2016.
Issues: Jurisdiction of Assessing Officer to issue notice u/s.148 when time for notice u/s.143(2) has not expired.
In this case, the appellant challenged the jurisdiction of the Assessing Officer to issue a notice u/s.148 of the Act when the time for issuance of notice u/s.143(2) had not expired. The appellant contended that the notice u/s.148 was issued before the expiry of the time period for issuing notice u/s.143(2), making it bad in law. The appellant cited decisions of the Hon’ble Madras High Court to support the argument that reassessment proceedings cannot be initiated under section 147 when the time for notice u/s.143(2) has not expired. On the other hand, the Revenue argued that the notice u/s.148 was valid. The Tribunal examined the facts and found that the return of income was filed on 14.2.2008, and the notice u/s.148 was issued on 6.10.2008, before the expiry of the time period for issuing notice u/s.143(2). Relying on the decisions of the Hon’ble Madras High Court, the Tribunal held that the notice u/s.148 was bad in law, and consequently, the assessment framed based on such notice was also bad in law. Therefore, the reassessment order passed u/s.143(3)/147 was canceled, and the grounds of appeal of the assessee were allowed.
Moreover, as the reassessment order was canceled, the other grounds of appeal of the assessee on the merits of addition were deemed infructuous and hence dismissed. Therefore, the appeal filed by the assessee was allowed, and the order was pronounced in the open court on 8/11/2016 in the presence of parties.
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