Invalid Notices Lead to Dismissal of Revenue's Appeals

The Tribunal upheld the CIT(A)'s decision to cancel assessments due to invalid notices under s. 143(2) issued beyond the statutory time limit. The Revenue's appeals for all three assessment years were dismissed, emphasizing the mandatory requirement of issuing notices within the prescribed period as supported by relevant case law.

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Issues: Revenue's appeal against CIT(A)'s cancellation of assessments based on the validity of notices under s. 143(2) beyond statutory time allowed.

Analysis:
1. The Revenue contended that CIT(A) erred in canceling assessments completed by the AO based on notices under s. 143(2) issued beyond statutory time. Assessee filed returns for three assessment years, accepted under s. 143(1)(a), with subsequent notices under s. 148 and 142(1) issued. Assessee objected to notices under s. 143(2) and 142(1) as beyond the 12-month period allowed by law. Despite objections, AO completed assessments disregarding the assessee's contentions.

2. Assessee challenged assessments, arguing that notices under s. 143(2)/142(1) were issued beyond statutory time, rendering assessments invalid. CIT(A) accepted assessee's contentions, citing that notices served beyond the 12-month period were illegal. CIT(A) referred to relevant case law and held the assessments as bad in law due to invalid notices under s. 143(2).

3. The Revenue appealed CIT(A)'s orders. During the hearing, the Departmental Representative did not provide specific arguments, relying on the AO's orders. Assessee's counsel reiterated arguments made before lower authorities, emphasizing the procedural nature of the amended provisions of s. 147 and the retrospective effect of these amendments. Assessee relied on case law to support the contention that notices under s. 143(2) within the prescribed statutory period are mandatory.

4. The Tribunal considered both parties' submissions and reviewed the facts and evidence. Notices under s. 143(2) were issued beyond the 12-month period from the filing of returns in response to notices under s. 148. The Tribunal noted that the issue of notice within the prescribed period is mandatory, as supported by relevant case law. The Tribunal upheld CIT(A)'s decision, emphasizing the legal requirement of issuing notices under s. 143(2) within the statutory limit to validate assessments completed under s. 143(3) r/w s. 147.

5. Consequently, the Tribunal dismissed the Revenue's appeals for all three assessment years, affirming CIT(A)'s decision to cancel the assessments based on the invalidity of notices under s. 143(2) issued beyond the statutory time allowed.

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