2023 (8) TMI 1545 - HC - Income Tax

Validity of assessment without notice under section 143: Court rules in favour of assessee, assessment set aside.

Issue concerns validity of assessment without issuance of a notice under section 143; the AO issued a notice under section 148 within thirty days and the ... Validity of assessment w/o issuing notice u/s 143 - HELD THAT:- Admittedly, the notice was issued by the AO u/s 148, within thirty days. A return was filed much later on 31.03.2009, after eight and a half months. On identical facts, in Chand Bihari Agrawal [2023 (8) TMI 158 - PATNA HIGH COURT] this Court considered the issue and held against the revenue. We find that the question of law has to be answered in favour of the assessee and against the revenue The High Court of Patna dismissed the appeal against the Tribunal's order under Section 143(3)/147 of the Income Tax Act, 1961. The court held that a notice under Section 143(2) should have been issued to the assessee. The decision was based on the precedent set in the case of Hotel Blue Moon. The appeal was dismissed in favor of the assessee.