2014 (2) TMI 225

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....1998, for facility. Numerous grounds have been raised. However, at the time of argument, the issues contained in ground Nos.2 and 10 only have been addressed as these issues are jurisdictional issues and need to be addressed first. 2. As per Ground No.2, the initiation of proceedings under Chapter XIV-B of the IT Act and the completion of assessment in pursuance thereof, are without jurisdiction as the mandatory requirements of the said Chapter have not been satisfied and the pre-conditions for making a valid order of assessment do not stand fulfilled. In this regard, it has been contended before us on behalf of the assessee that the assessment framed is without jurisdiction, since no notice u/s 143 (2) of the Act was issued prior to the f....

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....ons 143(2)/142, the assessing officer is authorized to complete the assessment ex-parte under Section 144. Clause (b) of Section 158 BC by referring to Sections 143(2) and (3) would appear to imply that the provisions of Section 143(1) are excluded but Section 143(2) itself becomes necessary only where it becomes necessary to check the return, so that where block return conforms to the undisclosed income inferred by the authorities, there is no reason, why the authorities should issue a notice under Section 143(2). However, if an assessment is to be completed under Section 143(3) read with Section 158- BC, notice under Section 143(2) should be issued within one year from the date of filing of block return. Omission on the part of the assess....

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....tice under sub-section (2) of Section 143. Accordingly, even for the purpose of Chapter XIV-B, for the determination of undisclosed income for a block period under the provisions of Section 158 BC, the provisions of Section 142 and sub-sections (2) and (3) of Section 143 are applicable and no assessment could be made without issuing notice under Section 143(2)." 5. Thus, it has been effectively held by the Hon'ble Supreme Court, under similar circumstances, that where the Assessing Officer repudiates the return filed u/s 158BC (a) and proceeds to make an inquiry, he has necessarily to follow the provisions of Sections 142, 143(2) and 143 (3) of the Act. That being so, in the present cases, where admittedly, no notice u/s 143 (2) of the Act....