TaxTMI 
TaxTMI 
2014 (11) TMI 283
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....re has erred in confirming the action of the AO in framing the assessment and passing the order under section 143(3) read with section 147 without serving notice under section 143(2). The appellant having not received notice under section 143(2), the assessment made and the order passed under section 143(3) read with section 147 is a nullity, bad in law and liable to be quashed. Section 143(2), the assessment made and the order passed under section 143(3) read with section 147 is a nullity, bad in law and liable to be quashed. 4.The ld.CIT(A)-III, Bangalore has erred in confirming the action of the AO in assessing the sum of Rs. 1.00 Crore received under the share subscription and shareholder's agreement under section 28(va) of the Act. On facts and in the circumstances of the case and law applicable, consideration received for the grant of 'right of first refusal' is not chargeable to tax. 5. The ld.CIT(A)-III, Bangalore has erred in confirming the levy of inte5rest under section 234B of the Act. On facts and in the circumstances of the case and law applicable, interest under section 234B is not leviable. The appellant denies its liability to pay interest under section 234B. 6.....
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....part of the assessment record, copy of which has been filed by the learned DR, it was submitted by the learned AR that obviously, the notices claimed to have been issued by the revenue u/s 143(2) of the Act, were prior to 05-10-2010. 4. In reply, learned DR submitted that assessee pursuant to the section 148 notice dated 24-12-2009, dispatched on 30-12-2009 had not filed a return within the 30 days time period, prescribed in the said notice. Assessee having failed to do so, as per the learned DR, AO was well within his rights to treat the returns originally filed by the assessee to be the returns filed in pursuance of notices u/s 148 of the Act. There was no need for any directions in this regard from the assessee. As per the learned DR, it was clear from the assessment records that the AO had dispatched on 23-09-2010 a notice u/s 143(2) dated 17-09-2010, by registered post. As per the learned DR the AO having treated the original returns filed by the assessee, as filed in pursuance to the notice issued u/s 148 of the Act, had rightly issued to notices u/s 143(2) of the Act. Therefore, as per the learned DR, assessee could not claim that no notice was ever issued u/s 143(2) at all....
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....e years were only subject to a proceedings u/s 143(1) of the Act. The AO himself has stated in the assessment order that returns for both the years were processed u/s 143(1) of the Act, accepting the returned income. There is also no dispute that notices u/s 148 of the Act for both the years, dated 24-12-2009, were dispatched to the assessee on 30-12-2009. From the verification of the assessment records, it is clear from that the AO had issued notices u/s 143(2) of the Act, and dispatched them to the assessee on 23-09-2010 by registered post with acknowledgement due. The notices dated 17-10-2009 and dispatched on 23-09-2010, have to be considered as served on the assessee, since these were sent by registered post. 7. This brings us to the crux of the issue i.e. whether notices under section 143(2) is mandatory in a reopened procedure and whether notices issued prior to the reopening would satisfy the requirement specified u/s 143(2) of the Act. That issue of a notice u/s 143(2) of the Act, is mandatory even in a re-assessment proceeding initiated u/s 148 of the Act has been clearly laid down by the Hon'ble Delhi High Court in the case of M/s Alpine Electronics Asia PTE Ltd., (supr....
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.... 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 shall be served on the assessee on or after the 1st day of June, 2003) ii) notwithstanding anything contained in clause(1), if he considers it necessary or expedient to ensure that the assessee has not understated the income or has not computed excessive loss or has not under paid he tax in any manner, serve on the assessee a notice requiring him, on a date to be specified therein, either to attend his officer or to produce, or cause to be produced, any evidence on which the assessee may rely in support of the return. (Provided that no notice under clause (ii) shall be served on the assessee after the expiry of six months from the end of the financial year in which the return is furnished). Once the original return filed by the assessee was subject to processing u/s 143(1) of the Act, the procedure of ass....