2009 (8) TMI 1278

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.... the block period does not get vitiated by non-issue of notice under Section 143(2). The respondent submits that passing of order under Section 158BC(c) without issue of notice under Section 143(2) is bad in law and whole assessment proceedings becomes null and void. 2. As submitted by both the parties, we first deal with the legal issue raised in the cross-objection. 3. Shri Jitendra Sanghvi, the learned Counsel for the assessee submitted that the issue whether it is mandatory for the assessing officer to have issued a notice under Section 143(2), prior to passing an order under Section 158BC stands concluded in favour of the assessee by the decision of the jurisdictional High court in the case of CIT v. Ms. Mudra G. Nanavati IT Appe....

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....J.M. Scindia (supra). 5. The learned Counsel for the assessee had filed the appeal papers filed by the revenue wherein the grounds of appeal read as below: 4. (a) The Tribunal failed to appreciate that Section 158BC of the Act clearly states that the provisions of Section 143(2) would apply so far as may be meaning thereby that only the notice under Section 143(2) has to be issued for carrying out scrutiny assessment in search cases. It does not mean that the time-limit specified under the proviso to Section 143(2) is to be applied strictly for scrutinizing the return filed under Section 158BC. (b) The Tribunal failed to appreciate that Section 143(2) starts with the words where a return has been furnished under Section....

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....ustified in allowing the appeal of the respondent holding that notice issued after the prescribed period under Section 143(2) invalidates the assessment under Section 158BC ? 2. Whether in law for the purposes of proceedings under Section 158BC, a notice under Section 143(2) is required to be issued within a period of one year from the date of filing of the return under Section 158BC ? 3. Whether in law since the limitation for making an assessment under s. 158BC is already prescribed in law, a notice under Section 143(2) can be issued at any time before completion of assessment under Section 158BC as long as a reasonable opportunity of being heard has been given to the assessee before completion of assessment. 7. After....