2013 (12) TMI 783

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....his appeal should be considered which goes to the root of the matter and is covered in favour of the assessee by the decision of Hon'ble Jurisdictional High Court. 3. Ground No.2 of the assessee's appeal reads as under:- "That the learned CIT(Appeals) erred in upholding the validity of assessment order passed u/s 147/143(3) of the Act, after recording the admission of the AO that no notice u/s 143(2) was issued in the case, ignoring the judgments of the Jurisdictional High Court, copies of which had been filed before him, and thus committing contempt of Court." 4. At the time of hearing before us, it is submitted by the learned counsel that admittedly in this case, no notice under Section 143(2) was served. In the remand report dat....

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....ctional High Court in the case of Ashok Chaddha (supra) while in the case of V.R. Educational Trust (supra), it was the same issue. 7. We have carefully considered the submissions of both the sides and perused the material placed before us. After considering the arguments of both the sides and the facts of the case, we find the contention of the learned counsel to be justified. The issue before the Hon'ble Jurisdictional High Court in the case of Ashok Chaddha (supra) was whether the issue of notice under Section 143(2) is necessary when the notice has been sent in a search case under Section 153A. Hon'ble Jurisdictional High Court in the said case held as under:- "Held, dismissing the appeal, that (i) no specific notice was required ....

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....d is mandated except in cases covered by the first and second proviso to Section 148 of the Act. The present case is not covered by the exceptions carved out in the two provisos as the return in the present case filed on or after 1st October, 2005. In the case of Assistant Commissioner of Income Tax and Another vs. Hotel Blue Moon (2010) 321 ITR 362 (SC), the Supreme Court had examined the question of mandate and necessity to issue notice under Section 143(2) of the Act, in the case of block assessment proceedings and it was observed as under:- 23. The other important feature that requires to be noticed is that Section 158-BC(b) specifically refers to some of the provisions of the Act which requires to be followed by the assessing office....

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....ection 143 are applicable and no assessment could be made without issuing notice under Section 143(2) of the Act. (emphasis supplied) 4. The aforesaid reasoning will equally apply to proceedings initiated under Section 147 of the Act." 9. That even in the case of Alpine Electronics Asia Pte. Ltd. (supra) also, the Hon'ble Jurisdictional High Court quashed the assessment proceedings because of non-issue of notice under Section 143(2) within time. In the said case also, the assessment was reopened under Section 147/148. In the aforesaid case, their Lordships of Hon'ble Jurisdictional High Court held as under:- "Admittedly the petitioner had filed returns of income pursuant to the notice under section 147/148 by letter dated Novemb....