TaxTMI 
TaxTMI 
2017 (9) TMI 809
X X X X Extracts X X X X
X X X X Extracts X X X X
.... has to file return of income before the due date mentioned in the notice, but the assessee choose not to file the return of income. The assessing officer issued notice u/s 148 on 16.11.2010 which was served on the assessee on 22.11.2010. In response to the notice issued u/s 148, the assessee filed return of income on 09.03.2011 declaring total income of Rs. Nil and agricultural income of Rs. 40,000/-. The assessing officer issued notice u/s 143(2) and was served on the assessee on 30.05.2011. The assessing officer concluded the assessment on total income of Rs. 51,01,400/- u/s 143(3) of I.T. Act. The assessee filed appeal against the order of the AO and the Ld. CIT (A) confirmed the assessment order of the assessing officer and dismissed the appeal of the assessee. The Ld. CIT (A) dismissed the technical ground in relation to issue of notice u/s 147 in para 4.3 which reads as under : "4.3. I have carefully considered the facts of the case, the submissions of the appellant and assessment order. In view of the facts on record, it is noticed that the assessee did not file its return of income suo-motu. In spite of several reminders by the AO, the assessee was not filing its ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....(3) or 144. In this case, the assessment involved was of assessment year 2008-09 and the notice was issued on 29.01.2010. Therefore, the time limit for completion of assessment was expired on 31.03.2011. During the pendency of assessment proceedings, the assessing officer issued notice u/s 148 on 16.11.2010 for reopening the assessment which is bad in law and has to be treated as invalid. When the assessment proceedings are already pending, the notice issued u/s 148 is invalid and the assessment order passed u/s 143(3) is barred by limitation. 4. On the other hand, the Ld. DR argued that the assessing officer has issued notice u/s 142(1) calling for the return of income for the A.Y.2008-09 on 29.01.2010 and the assessee failed to furnish the return of income by 25.02.2010 the due date given in the notice. Since the assessee did not choose to file the return of income within one year from the end of the relevant assessment year, or before the due date mentioned in the notice u/s 142(1) the proceedings initiated u/s 142(1) were deemed to have been concluded and hence, the assessing officer has initiated proceedings u/s 147 of the I.T.Act which is valid. The Ld. DR contended that t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....turn of his income or the income of any other person in respect of which he is assessable under this Act, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed, or : Notice u/s 142(1) is issued in case of non filer calling for the return of income. In the instant case, the AO has issued the notice calling for return of income. Section 144 Best judgment assessment. 144. (1) If any person- (a) fails to make the return required under sub-section (1) of section 139 and has not made a return or a revised return under sub-section (4) or sub-section (5) of that section, or (b) fails to comply with all the terms of a notice issued under sub-section (1) of section 142 or fails to comply with a direction issued under sub-section (2A) of that section, or (c) having made a return, fails to comply with all the terms of a notice issued under sub-section (2) of section 143, the Assessing Officer, after taking into account all relevant material which the Assessing Officer has gathered, shall, after giving the assessee an opportunity of being heard, make the assessment....
X X X X Extracts X X X X
X X X X Extracts X X X X
..... [Issue of notice where income has escaped assessment. 148. (1) Before making the assessment, reassessment or recomputation under section 147, the Assessing Officer shall serve on the assessee a notice requiring him to furnish within such period, as may be specified in the notice, a return of his income or the income of any other person in respect of which he is assessable under this Act during the previous year corresponding to the relevant assessment year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed; and the provisions of this Act shall, so far as may be, apply accordingly as if such return were a return required to be furnished under section 139 :] 5.4 On furnishing the return of income u/s 148, the assessing officer can choose to drop the proceedings and proceed with the reassessment proceedings by issue of notice u/s 143(2) of I.T. Act and in case the assessee do not respond to notice u/s 148, the assessing officer can proceed to complete the assessment u/s 144, Best judgment . Once the return is filed in response to notice u/s 148, provisions of sections 139, 143 and 144 applies in case o....