2017 (6) TMI 732

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....return was filed on 12/7/2004, nearly 28 months after the issue of notice u/s.158BC dated 11/2/2002, and much beyond the statutory period of 45 days for filing such return? [B] Whether the ITAT has erred in law and on facts in not holding that the delayed return was thus to be treated as non-est return, as held by the Patna Bench of the ITAT in the case of Chand Bihari Agarwal v/s ACIT, IT (SS) A No.5/PAT/2010, and that that ratio of Hotel Blue Moon would not be applicable in this case? [C] Whether in the facts and circumstances of the case ITAT was right in dismissing the appeal of the Revenue purely on the basis of Circular No.21/2015 without considering the fact that the block assessment proceedings and the proceedings of years fal....

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....icer to complete the assessment. 3. Appearing for the revenue, learned counsel submitted that the Tribunal erred in relying on the decision of the Supreme Court in the case of Hotel Blue Moon reported in 321 ITR 362, when the return itself was invalid. Requirement for issuing notice under Section 143 (2) would arise only when a valid return is filed. On the other hand, learned counsel Shri Soparkar for the assessee submitted that the Assessing Officer had accepted the return, raised detailed queries and framed an assessment, which was not in the nature of best judgment assessment under Section 144 of the Act. There is neither any provision under the Act nor did the Assessing Officer treat the return as non-est. When the Assessing Officer....

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.... Assessing Officer considers it necessary or expedient to ensure that the income is not under-stated. After issuing such a notice, the Assessing Officer would proceed to frame assessment under sub-section (3) of Section 143 of the Act. This provision, therefore, envisages a situation where a return under Section 139 or in response to notice under Section 142 (1) of the Act has been filed. Section 144 of the Act, which pertains to best judgment assessment covers various situations, including Clause (a) of Sub-section (1), where a person fails to make return required under sub-section (1) of Section 139 or under sub-section (4) or (5) of the said Section, and in Clause (b), in case of assessee, who fails to comply with the terms of a notice i....