TaxTMI 
TaxTMI 
2015 (2) TMI 1301
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....890/-. Subsequently a search was conducted under section 132(1) at the business and residential premises of assessee. The Revenue claimed that certain valuables and incriminating documents were found and seized therefrom. An order dated 20.5.1992 under section 132(5) was passed estimating assessee's income for the assessment year 1990-91 at Rs. 4,05,95,481/-. 4. A notice dated 2.2.1993 under section 148 of the Act, 1961 was issued and served upon assessee on that very date, in response whereto, the assessee furnished return of income on 4.3.1993, showing income of Rs. 55,890/-. A notice under section 142(1) of Act, 1961 dated 01.10.1993 was served on assessee on 04.10.1993, fixing 08.10.1993, on which date, it is said that none appea....
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....corrected either at the stage of appellate authority or at the stage of A.O. then assessment has to be cancelled. That is, if the defect in the procedure followed by the A.O. is not curable than the assessment has to be cancelled. (3) Where there is an error in the exercise of the jurisdiction and there is time limit available with the A.O., who has correctly assumed jurisdiction, to remove/rectify such an error, then assessment should only be set aside and not cancelled. That is, if the defect occurred in the exercise of jurisdiction is curable than the assessment need only to be set aside for curing the defect. (4) Where an assessment is framed u/s 143(3) or 144 without issuance of notice u/s 143(2) or 142(1) then such a....
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.... also held that an assessment made under section 143(3) without issuing notice under section 143(2) would be illegal and in this regard it has followed the decision of this Court in Mohan Dairy Vs. Union of India, 2006 UPTC 461 in para -33 of its order. It has also held that if there is no limitation of time in proceedings afresh for passing an order of assessment under section 143(3) of the Act after issuing notice under section 143(2), the Assessing Officer can undergo this exercise again and it cannot be said that once an illegal assessment under section 143(3) has been made by not issuing notice under section 143(2), for curing defect, fresh assessment proceedings cannot be undertaken. To this extent, we find that the law is well settle....
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....t of notice under section 143(2). The scope of notice under section 143(2) was subject matter of consideration in Assistant Commissioner of Income Tax Vs. Hotel Blue Moon, [2010] 321 ITR 362 (SC) and the Apex Court said that "omission on the part of assessing authority to issue notice under section 143(2) cannot be a procedural irregularity and the same is not curable, therefore, the requirement of notice under section 143(2) cannot be dispensed with." 11. Above view has been followed by this Court in Commissioner of Income Tax Vs. Bihari Lal Agrawal, [2012] 346 ITR 0067 wherein the Court has also held that the assessee had participated in the assessment, would be of no legal consequences when the proceedings are vitiated on account of n....
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....o find out whether the period to issue fresh notice under section 143(2) is still available or not. It would be appropriate to reproduce section 143(2) of the Act, 1961. "(2) Where a return has been furnished under section 139, or in response to a notice under sub-section (1) of section 142, the Assessing Officer shall,- (i) where he has reason to believe that any claim of loss, exemption, deduction, allowance or relief made in the return is inadmissible, serve on the assessee a notice specifying particulars of such claim of loss, exemption, deduction, allowance or relief and require him, on a date to be specified therein to produce, or cause to be produced, any evidence or particulars specified therein or on which the ass....