2010 (7) TMI 1026

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....mmon judgment. 3. The respondent assessee, a Company, runs a Hospital at Sitapur Road, Lucknow. The income tax returns for the assessment year 1998-99 and 1999-2000 were filed showing loss of ₹ 221974.00 which was processed under Section 143 (1) of the Income Tax Act (In short the Act). The assessment for both the assessment years, were reopened under Section 148 of the Act and notice under Section 148 of the Act was issued on 8.3.2002. A notice under Section 142 (1) was also issued on 28.1.2003 and the assessment was completed under Section 147/148 of the Act on 13.3.2003 on the total income of ₹ 27,44,310.00 and ₹ 27,54,870.00 for both years. The assessee preferred appeal which was rejected by the appellate [2] authorit....

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....ribunal was justified in imposing another condition that the provisions of Section 143 (2) of the Income Tax Act 1961 are also required to be complied with. III. Whether the learned Income Tax Appellate Tribunal has failed to appreciate that the assessee had acquiesced in or waived an irregularity, if any, in the notice under section 143 (2) of the Income Tax Act, 1961 by participating in the assessment proceeding before the assessment officer without agitating the issue of non-issuance of the said notice and ignoring the law laid down by the Hon'ble Gujrat High court in the case of Setlavad Brothers. Vs. M. K. Meerani, ACIT (2002) 253 [3] ITR, 513. 6. While assailing the impugned order of Tribunal, it has been vehemently argued by ....

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....able. Therefore, requirement of notice under Section 143 (2) of the Act, cannot be dispensed with. Relevant portion from the judgment of Rajiv Sharma (supra) is reproduced as under: "49. In the case of R. Dalmia (supra), Hon'ble Supreme court held that for assessment or re-assessment under Section 147 of the Act, the procedure laid down in Section 139 including Section 144 B [4] should be followed. To reproduce relevant portion from the judgment of R. Dalmia as under: "As to the argument based upon sections 144A, 246 and 263, we do not doubt that assessments under section 143 and assessments and reassessments under Section 147 are different, but in making assessments and reassessments under section 147 the procedure laid d....