TaxTMI 
TaxTMI 
2014 (2) TMI 1297
X X X X Extracts X X X X
X X X X Extracts X X X X
.... filing Return and the date within which the Return should be filed, was declared 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....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ontained in Section 148 of the Act. Even during the course of arguments/hearing of the appeal, 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 th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....if such return of income, assessment, notice, summons or other proceeding is in substance and effect in conformity 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 sit....
X X X X Extracts X X X X
X X X X Extracts X X X X
....erefore, it is apparent that there has been a violation of law. Therefore, when the sum and substance of the notice issued 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 withi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n Section 292B of the Act would stand frustrated/defeated. The intent of the Legislature is clear from the language employed in this provision which states that a defective notice, such as the one in the present case, cannot be declared invalid by reason of any mistake, defect or omission, if the notice in 'substance' and in 'effect' is in conformity with or according to the intent of purpose of this Act. The intent or purpose of issuing the notice is to call upon the assessee to file return, if the Assessing Officer finds that income has escaped the assessment. This being the intent and purpose of the provisions contained in Section 148 of the Act, in our opinion, it stands satisfied if the notice is responded within reason....