2014 (3) TMI 584

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.... the block period from 1.4.1985 to 15.9.1995 under Section 143(3) read with Section 158BC of the Income-tax Act, pursuant to a search under Section 132 in the premises of one Sri. Babu Rajendra Prasad and Sri. Sasidharan on 15.9.1995. Notice under Section 158BC was issued to the assessee on 25.6.1996. He filed return of income declaring nil undisclosed income on 22.8.1996. Subsequently, the Assessing Officer passed an order under Section 143(3) read with Section 158 BC of the Act on 27.9.1996 determining the total undisclosed income at Rs. 9,55,380/- and demanding income tax of Rs. 5,73,228/-. 3. The assessee preferred an the appeal before the Income-tax Appellate Authority, which was disposed of reducing the estimated additions made in th....

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....e Tribunal Annexure-C arbitrary and illegal and liable to be set aside?" 6. We have heard the learned counsel for the appellant as well as the learned standing counsel appearing for the Department as well. We have requested the learned standing counsel to verify the correctness of the information received in terms of Annexure-D and the learned standing counsel fairly submitted that the information given was correct and that no notice under Section 143(2) of the Income Tax Act was issued to the assessee for the block period from 1.4.1985 to 15.9.1995. 7. The Tribunal had considered this issue in paragraph 5 of the order, which reads as under: "5. With regard to the second legal issue, viz., non- issuance of notice u/s 143(2) of the Act, w....

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.... the basis of the specific answer given by the authority concerned. Section 143(2) reads as under: "(2) Where a return has been furnished under Section 139, or in response to a notice under sub- section (1) of section 142, the Assessing Officer shall,-- (i) where he has reasons to believe that any claim of loss, exemption, deduction, allowance or relief made in the return is inadmissible, serve on the assessee a notice specifying particulars of such claim of loss, exemption, deduction, allowance or relief and require him, on a date to be specified therein to produce, or cause to be produced, any evidence or particulars specified therein or on which the assessee may rely, in support of such claim: Provided that no notice under this clause....