2018 (10) TMI 1187

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....A Bench of this Court by an order dated 07.02.2018 has admitted the appeal on the following substantial question of law:- "Whether in the facts and the circumstances of the case, the ITAT was right in holding that the notice under Section 143(2) of the Income Tax Act was required to be issued even in the case when no return in response to Notice under Section 148 was filed." In order to answer the aforesaid substantial question of law, reference to few relevant facts is necessary which are stated infra. 3) The assessee filed its return for the assessment year 2005-06 on 13.02.2008 declaring the net loss of Rs. 6000/-. The return was filed by the assessee belatedly, therefore, the same could not be processed. Thereafter ....

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....g Officer. In the aforesaid factual background, this appeal has been filed. 5) Learned counsel for the appellant submitted that the judgments relied on by the Tribunal in the cases of 'ACIT vs. Hotel Blue Moon' (2010) 321 ITR 362 (SC), 'CIT vs. Madhya Bharat Energy Corporation Ltd.' (2011) 337 ITA No.10/2017 Page 3 of 5 ITR 389 (Del) and 'CIT vs. Vision Inc.' (2012) 73 DTR 201 (Del), has no application to the fact situation of the instant case. It is submitted that the Tribunal ought to have appreciated that in the present case no return in terms of notice issued under Section 148 of the Act was filed by the assessee. It is also submitted that in the decisions in cases of 'ACIT vs. Hotel Blue Moon' 'CIT vs. Madhya Bharat Energy Corporati....

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....urn has been furnished. 7) The Supreme Court in the case of ACIT vs. Hotel Blue Moon (supra) in paragraph 15 held as under:- "Paragraph 15............... But Section 143(2) itself becomes necessary only where it becomes necessary to check the return, so that where block return conforms to the undisclosed income inferred by the authorities, there is no reason, why the authorities should issue notice under Section 143(2). However, if an assessment is to be completed under Section 143(3) read with Section 158 BC, notice under Section 143(2) should be issued within one year from the date of filing of the block return, omission on the part of the assessing authority to issue notice under Section 143(2) cannot be a procedural irregula....