2019 (7) TMI 1875

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.... 05.08.2016 for AY 2011-12. 2. The grounds of appeal filed by the revenue are as under: "1. Whether on the facts and in the circumstances of the case and in law, the Ld.CIT(A) has erred in admitting the additional ground that no notice u/s.143(2) was issued within statutory time after the return was filed u/s.147, the objection was raised by the assessee and, therefore, notice u/s.143(2) issued after expiry of statutory time cannot validate the assessment. 2. Whether on the facts and in the circumstances of the case and in law, the Ld.CIT(A) has erred in considering the objection raised by the AO that no such objection was raised during the scrutiny proceedings by the assessee. 3. Whether on the facts and in th....

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....n response to the notice u/s. 148 of the Act and has also asked for the reasons recorded for initiation of proceedings u/s. 147 of the Act. The AO thereafter notes that he provided the reasons recorded to the assessee vide communication dated 25.11.2013. Thereafter, the assessee raised an objection regarding reopening assessment vide letter dated 05.12.2013 which was received in his office (A.O) on 09.12.2013. According to AO, the objection of the assessee was disposed of by a speaking order dated 12.12.2013 and thereafter he issued notice u/s. 143(2) and 142(1) of the Act on 12.12.2013. The main grievance of the assessee was that sec. 143(2) notice of the AO was issued after six months from the end of the month on which the return of incom....

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....een the letter and the return of income, the Ld. CIT(A) has erred in upholding the contention of the assessee. We note that the notice u/s. 148/147 of the Act dated 21.01.2013 pursuant to which the assessee filed letter dated 19.02.2013 requesting the AO to treat the original return filed u/s. 139 of the Act as return in response to notice u/s. 148/147 of the Act. As per sec. 143(2), where a return has been furnished u/s. 139 or in response to notice under sub-section(1) of sec. 142, the AO considers it necessary or expedient to ensure that the assessee has not understated the income or has not computed excessive loss or has not under paid the tax in any manner, shall serve on the assessee a notice requiring him on a date to be specified th....

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....h Court in the case of CIT vs. C. Palaniapan (284 ITR 257(Mad)] held that issuance of notice u/s 143(2) is mandatory in reassessment cases also. Further, we do not find any merit in the argument of the Ld. CIT, DR that return of income should have been filed and not the letter requesting the AO to treat the original return as the return of income pursuant to the 147/148 notice. For that we rely on the judgment of the Hon'ble Calcutta High Court in the case of Iqbal Singh Atwal Vs. CIT (1984) 147 ITR 599 (Cal) and Hon'ble Delhi High Court in the case of Pr. CIT Vs. Shri Jai Shiv Shankar Traders Pvt. Ltd. (2016) 383 ITR 448 (Del.). Therefore, the notice issued by A.O u/s 143(2) dated 12.12.2013 is hit by the 1st Proviso to section 143(2) of t....