2018 (5) TMI 1018

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...., by allowing M.A. of the assessee, the appeal was re-fixed for hearing on merit. 2. Briefly, the facts of the case are that assessee is a company filed return of income declaring NIL income. The case was subsequently reopened under section 147 of the I.T. Act, after recording reasons and notice under section 148 of the I.T. Act, was issued on 29th March, 2013. Reply to the notice under section 148 of the Act has been filed by assessee on 26.11.2013. Notice under section 143(2) was issued on the same day on 26.11.2013 in response to which, assessee-company appeared and the A.O. after discussion made the addition of Rs. 10 lakhs on account of unexplained investment under section 68 of the I.T. Act, 1961 vide order dated 28.02.2014 under s....

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.... are legal in nature which are also not opposed by the Revenue, I admit the additional grounds for the purpose of disposal of the appeal. 5. Learned Counsel for the Assessee submitted that assessee filed reply to the notice under section 148 of the I.T. Act on dated 26.11.2013 which is noted in the assessment order, copy of which, is filed at page-11 of the paper book, in which, assessee explained that the return already filed under section 139(1) may be treated as return filed in response to notice under section 148 of the I.T. Act. He has submitted that on the same day A.O. issued notice under section 143(2) i.e., on 26.11.2013, copy of which, is filed at page-12 of the paper book. He has, therefore, submitted that the A.O. has not val....

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....notice was served on the Authorized Representative simultaneously on his filing the return which clearly indicates that the notice was ready even prior to the filing of the return. The provisions of s. 143(2) make it dear that the notice can only be served after the AO has examined the return filed by the assessee. Whereas it is dear that when the assessee came to file the return, the notice under s. 143(2) was served upon the Authorized Representative by hand. Thus, it would amount to gross violation of the scheme of s. 143(2)." 5.1. And the conclusion is as under : "Assessment made in pursuance of a notice under section 143(2) issued on 23rd March, 2000 when the return was filed on 27th March, 2000 is invalid." 6. He has su....