Assessment order quashed for late notice under sec 143(2). Assessee appeal allowed.

The Tribunal quashed the assessment order due to the invalidity of the notice issued under section 143(2), which was beyond the prescribed time limit. Consequently, all other grounds raised by the assessee became infructuous, and the appeal of the assessee was allowed, setting aside both the assessment order and the order passed by the CIT (A).

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Issues Involved:
1. Validity of the assessment order under section 143(3) due to the alleged invalidity of the notice issued under section 143(2).
2. Confirmation of trading addition of Rs. 12,25,525/-.
3. Addition of Rs. 8,78,500/- under section 68.
4. Disallowance of Rs. 18,62,147/- out of interest and bank charges.
5. Disallowance of Rs. 22,47,127/- on account of interest paid on loan for factory construction.
6. Disallowance of Rs. 2,04,259/- out of certain expenses.
7. Disallowance of Rs. 15,21,765/- for discount and commission expenses.
8. Disallowance of Rs. 16,02,991/- on account of interest paid for funds used in WIP construction.

Detailed Analysis:

1. Validity of the Assessment Order under Section 143(3):
The primary issue was the validity of the assessment order under section 143(3) due to the alleged invalidity of the notice issued under section 143(2). The assessee argued that the notice under section 143(2) was issued beyond the prescribed time limit, rendering the entire assessment proceedings void ab initio. The Tribunal noted that the notice under section 143(2) should have been issued within 12 months from the end of the month in which the return was filed. Since the notice was issued on 28.08.2009 and served on 02.09.2009, beyond the prescribed period, the Tribunal held that the assessment order was invalid. The Tribunal relied on the Supreme Court's decision in ACIT vs. Hotel Blue Moon, which emphasized that the issuance of notice under section 143(2) within the prescribed time is a mandatory condition and not a procedural irregularity.

2. Confirmation of Trading Addition of Rs. 12,25,525/-:
The Tribunal did not address this issue in detail as the primary ground regarding the validity of the assessment order was upheld, rendering other grounds infructuous.

3. Addition of Rs. 8,78,500/- under Section 68:
Similar to the trading addition, this issue was not addressed in detail due to the quashing of the assessment order on the primary ground.

4. Disallowance of Rs. 18,62,147/- out of Interest and Bank Charges:
The Tribunal did not delve into this issue as the assessment order was quashed.

5. Disallowance of Rs. 22,47,127/- on Account of Interest Paid on Loan for Factory Construction:
This issue was also not analyzed in detail because the primary ground regarding the invalidity of the assessment order was upheld.

6. Disallowance of Rs. 2,04,259/- out of Certain Expenses:
The Tribunal did not address this issue due to the quashing of the assessment order.

7. Disallowance of Rs. 15,21,765/- for Discount and Commission Expenses:
This issue was not discussed in detail as the assessment order was invalidated on the primary ground.

8. Disallowance of Rs. 16,02,991/- on Account of Interest Paid for Funds Used in WIP Construction:
The Tribunal did not consider this issue due to the quashing of the assessment order.

Conclusion:
The Tribunal quashed the assessment order due to the invalidity of the notice issued under section 143(2), which was beyond the prescribed time limit. Consequently, all other grounds raised by the assessee became infructuous and were not addressed in detail. The appeal of the assessee was allowed, and the assessment order, as well as the order passed by the CIT (A), were set aside.

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