TaxTMI 
TaxTMI 
2014 (11) TMI 905
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....initially processed under Section 143 (1) of the Act. However, the notice under Section 143 (2) of the Income Tax Act was issued to the assessee only on 20.11.09, whereas according to the assessee, the time for issuance of the notice expired on 30.09.09. Questioning the assessment for want of notice under Section 143 (2) of the Income Tax, the assessee preferred two cross appeals and one cross-objection before the Tribunal, all pertaining to the assessment year 2007-2008. The Tribunal found that the notice issued by the Revenue is beyond the limitation period prescribed under Section 143 (2) of the Act, allowed the appeal and set aside the order following the judgment of the Supreme Court in ACIT Vs Hotel Blue Moon (321 ITR 362). Aggrieved ....
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....dent from the provision of law, as notice under Section 143 (2) is mandatory. For better clarity, Section 143 (2) is extracted hereunder :- "Assessment 143. * * * * * * * (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 reason 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,....
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.... the assessment under Section 148 of the Act, compliance of the procedure laid down under Sections 142 and 143(2) is mandatory. On the admitted fact that beyond notice under Section 142(1), there was no notice issued under Section 143(2), and in the light of the fact that the very basis of the reassessment was the failure on the part of the assessee in not disclosing the capital gains arising on the transfer of property for assessment and that admittedly the assessee had requested the officer to accept the original return as a return filed in response to Section 148 of the Act, we hold that there was total failure on the part of the Revenue from complying with the procedure laid down under Section 143(2) of the Act, which is mandatory one a....