2007 (3) TMI 747

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....IT DR represented the Revenue. ITA No. 81/Del/03 (Assessee's appeal) : 3. At the time of hearing the learned counsel for the assessee submitted that preliminary legal issue raised in ground no. 2 should be considered first. The learned CIT DR also agreed for considering the preliminary ground first. Hence, we have heard the parties on ground no. 2 which is as under: "Because the mandatory requirement of issuing notice under section 143(2) having not been complied with, even though the appellant had duly filed the return in compliance with notice under section 158 BC, the block assessment order is liable to be declared as null and void and the learned CIT (Appeals) has erred in law in holding that non-issuance of notice under section....

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....y pleading that since no notice u/s 143(2) was issued, the assessment order has no legs to stand. On this issue, the learned CIT (Appeals) sought a remand report from the AO. The AO submitted the remand report on 6-6-01. A copy of this remand report has been placed in the paper book and is available at pages 111 to 113. On this issue, the submissions of the AO are as under: "(B) The appellant's contentions that the AO cannot be said to have been validly vested with the jurisdiction as no notice under section 143(2) was issued has no legs to stand on. The provision of section 143(2) are essentially procedural in nature. Neither the Act nor the rules made thereunder anywhere prescribe a format for issuance of the notice. The jurisdictio....

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....vides that the provisions of section 142 as well as sub-section (2) and (3) of section 143 shall apply even in the case of a block assessment so far as may be. There is no dispute that in the case of assessment under Chapter XIV, a notice under section 143(2) is mandatory where the Assessing Officer proceeds to make an inquiry as provided in section 142. Similarly, the provision of section 143(2) will be mandatorily applicable in the case of block assessment also where the Assessing Officer in repudiation of the return filed under section 158BC(a) proceeds to make an inquiry in the proceedings under Chapter XIV-B. Once the power of inquiry under section 142 is invoked, the Assessing Officer has no option but to follow the provisions of sect....