2014 (2) TMI 1297

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....as invalid? (ii) Whether the Tribunal was correct in not taking into consideration Section 292B of the Act, which allow to cure any such defects pointed out by the Assessee?" 2. These questions arise for our consideration in the back-drop of the facts that a notice under Section 148 of the Income Tax Act, 1961 (for short 'the Act') was issued for the assessment year 1997-98 on 11.11.2002. The notice was issued by the Assessing Officer after obtaining approval from the Additional Commissioner of Income-tax as contemplated under section 151 of the Act. Admittedly, notice under Section 148 of the Act for re-opening of the assessment was issued after expiry of the period of four years from the end of relevant assessment year. In resp....

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...., such ground was not urged by the assessee. The FAA dismissed the appeal on merits filed by the assessee vide its order dated 24th March, 2005. 4. Feeling aggrieved by the order of the FAA, the assessee preferred second appeal before the Tribunal and in the memorandum of appeal, raised the ground that "the condition precedent being absent, the reopening of assessment under Section 147 of the Act is bad in law". Such ground was raised for the first time before the Tribunal and the Tribunal ventured to examine the same and ultimately held that the notice under Section 148 of the Act was bad in law since, it did not specify the time within which the assessee was called upon to file return of income. It is in this background, we are called up....

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....mity with or according to the intent and purpose of this Act." 6. For our purpose, under this provision, a notice issued or purported to have been issued in pursuance of any provisions of this Act, shall be invalid and shall be deemed to be invalid (sic) mainly by reason of any mistake, defect or omission in such notice, if such notice is in substance and effect in conformity with or according to the intent and purpose of this Act. 7. Mr. Parthasarathi, learned counsel appearing for the respondent invited our attention to the judgment of this Court in CIT v. Micro Labs Ltd. [2012] 348 ITR 75 and submitted that in a similar situation, this Court while dealing with Section 292B read with Section 158BC of the Act held that extension of time ....

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....d to the assessee is not in conformity with the purpose of the Act, section 292B has no application. Hence, question No. 2 is answered in favour of the assessee and against the Revenue." 8. From bare perusal of the provisions contained in Section 158BC of the Act, it is clear that notice under this provision needs to be served on the assessee by providing time of not less than 15 days and not more than 45 days and that no extra time can be granted subsequently. In the case before this Court, a notice under Section 158BC of the Act was issued on December 15, 1997, calling upon the assessee to file return of income within a period of 15 days from the Block period 1988-89 to 1998-99. By the letter dated January 2, 1998, the assessee sought ti....