2014 (2) TMI 221

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.... consideration was filed by it on 22-8-2003 declaring total income at "nil". The said return was initially processed by the A.O. u/s 143(1) of the Income Tax Act, 1961 (the Act). Subsequently, he, however, found that the assessee had entered into an agreement for sale/transfer of TDR/FSI with M/s K. Bhatia Enterprises, the Developer, for a consideration of Rs. 1,40,12,700/- and the said transaction was not disclosed by the assessee in the return of income filed for the year under consideration. He, therefore, reopened the assessment for the year under consideration and issued a notice u/s 148 of the Act in response to which the copy of return originally filed was submitted by the assessee with a request that the same may be treated as the r....

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.... the hands of the assessee. The ld. CIT(A) accordingly deleted the addition made by the A.O. to the total income of the assessee on account of capital gain. Aggrieved by the order of the ld. CIT(A), the assessee and the Revenue both are in appeal before the Tribunal and the grounds raised by them in their respective appeals read as under:- By the Assessee:- 1. "On the facts and in the circumstances of the case and in law the Learned Assessing Officer has erred in passing order u/s. 143(3) read with section 147 without issuing notice u/s. 143(2) which renders the assessment orders passed under section 143(3) bad in law and void ab initio. 2. On the facts and in the circumstances of the case and in the law the Assessing Officer has erred i....

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....been raised challenging the validity of the reassessment made by the A.O. u/s 143(3) r.w.s. 147 of the Act on the ground that the said assessment made by the A.O. without issuing notice u/s 143(2) of the Act is bad in law. In this regard, the ld. D.R. was directed by the Bench to produce the assessment records to show whether notice u/s 143(2) was issued by the A.O. or not before completing the assessment u/s 143(3) r.w.s. 147 of the Act. As per the direction of the Bench, the ld. D.R. produced the relevant assessment records and admitted that there is nothing available in the said record to show that notice u/s 143(2) was issued by the A.O. before completing the reassessment. In this regard, the ld. counsel for the assessee has relied on t....

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....Hon'ble Madras High Court in the case M. Chellappan (supra) and that of Hon'ble Gauhati High Court in the case of Smt. Bandana Gogoi (supra), the Hon'ble Bombay High Court found that the language used in section 143(2) is similar to the language used in section 16(2) of the Wealth Tax Act. In this context, it was held by the Hon'ble Bombay High Court that the view taken by the two High Courts reflected the language of 147 and accordingly even in a case of reopening of assessment u/s 147, the A.O. is bound to comply with the requirement of section 143(2) of the income Tax Act. The Hon'ble Bombay High Court also proceeded further to examine this issue independently in the light of the provisions of section 14 to 16 of the Wealth tax Act and h....