TaxTMI 
TaxTMI 
TaxTMI 
2017 (6) TMI 1344
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....e against the order of the Ld.CIT(A)-3, Coimbatore in IT Appeal No.600/14-14 dated 27.11.2015 for the AY 2012-13. CO No.56/Mds/2016 filed by the Revenue in the Appeal No.351/Mds/2016 for the AY 2012-13. ITA No.3192/Mds/2016 is an appeal filed by the Revenue against the order of the Ld.CIT(A)-3, Coimbatore in appeal No.388/15-16 dated 05.08.2016 for the AY 2013-14. 2. Shri Narendra Kumar Naik, JCIT represented on behalf of the Respondent and Shri S. Sridhar, Adv., represented on behalf of the Appellant. ITA Nos.22 & 351/Mds/2016 & CO No.56/Mds/2016 (in ITA No.351/Mds/2016) for the AY 2012-13: 3. It was fairly agreed by the Ld.AR that in the Cross Objection No.56/Mds/2016, the same was in support of the order of the Ld.CIT(A). It wa....
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....e of the revised return filed on 26.02.2014 by e-filing at Page No.4 Para No.6 of the Assessment Order. It was a further submission that at Page No.33 Para No.14, the AO considered the objection of the assessee in respect of non-issuance of notice u/s.143(2). It was a submission that the AO did not reject the revised return filed by the assessee on 26.02.2014 but has considered the data disclosed in the revised return filed on 26.02.2014 but had rejected on merits, the results admitted and the method of accountancy adopted in the said return. It was a submission that the notice u/s.143(2) having not been issued in respect of the return filed on 26.02.2014, the assessment was liable to be annulled. 4. In reply, Ld.DR submitted that the ass....
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.... u/s.143(2) in the event that the AO proposes to make assessment u/s.143(3). In the present case, the AO having not issued notice u/s.143(2) in respect of a valid revised return filed on 26.02.2014 and more so, the said return have not been treated as invalid, the consequential assessment is bad in law, in view of the principles laid down in the Hon'ble Supreme Court in the case of ACIT vs. Hotel Blue Moon reported in 321 ITR 362 (SC). Further, in view of the position in law that if a revised return is filed u/s.139(5) and if such return is a valid return then the assessment can be completed only on the basis of such revised return as has been held by the Hon'ble High Court of Orissa in the case of Orissa Rural Housing Development Corporati....
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....ng the return of income filed on 29.09.2013. It was a submission that Ld.CIT(A) had annulled the assessment by holding that the Assessment Order was made u/s.143(3) on the basis of original return filed on 29.09.2013 in connection with which no notice u/s.143(2) has been served. It was a submission that the order of the Ld.CIT(A) was liable to be reversed. 9. In reply, the Ld.AR vehemently supported the order of the Ld.CIT(A). 10. We have considered the rival submissions. A perusal of Para No.5.1 to 5.4 of the order of the Ld.CIT(A) which is extracted below: 5.1 The settled position in law is that if a revised return is filed on section 139 (5) of the Income Tax Act, 1961, assessment can be completed only on the basis of revised return ....
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....vidence or particulars specified therein or on which the assesseee may rely, in support of such claim". 5.2 This makes it amply clear that notice under section 143 (2) is issued in respect to a return of income and not with respect of assessment year. In the instant case, notice under section under 143 (2) dated 10-09-2014, has been served in connection with the return of income submitted by the appellant on 26-02-2014, but the assessment has been proceeded with in relation to original return filed on 29-09-2013 for which no notice under section 143 (2) has been served. 5.3 The assessment suffers on four grounds from the legal angle - 1. Notice under section 143(2) is issued/served in connection with a return of income filed and not i....