TaxTMI 
TaxTMI 
2022 (12) TMI 1080
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.... 2. In this appeal, the assessee has raised the following grounds: "1. GROUNDS OF APPEAL : 1. The ld CIT(A) erred in holding that the issue of notice u/s 148 rws 147 of the Act was valid in law. 1.i. In doing so, the ld.CIT (A) erred in not considering the judgement of the high courts including of the jurisdictional high court relied upon by the appellant which are on all four with the appellant's facts 2. The Id. CIT(A) erred in dismissing Gr No. 11 & Lii raised before him with regard to challenge to the assessment order for non-issue of notice u/s 143 (2) of the Act. 2.i In doing so, the ld. CIT(A) erred in relying on sec. 292 BB of the Act without appreciating that non-issue of notice u/....
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.... The return filed by the assessee was processed under section 143(1) of the Act. Subsequently, reassessment proceedings were initiated in the case of the assessee on the basis of information received from DIT (Investigation), Ahmedabad, that during the financial year 2008-09 fictitious profits and losses have been created by misusing the client code modification facility in F&O segment on NSE by some brokers and the assessee is one of the beneficiaries of these fictitious profits and losses, which has been transferred to reduce its tax liability. Accordingly, notice under section 148 of the Act was issued to the assessee on 29/03/2016. In response thereto, the assessee requested that the return originally filed be treated as a return filed ....
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....ed CIT(A) dismissed the ground challenging the validity of assessment proceedings in absence of notice issued under section 143(2) of the Act, by observing as under: "(ii) Notice u/s.143(2): 5.7 The assessee submitted that the order u/s. 143(3) r.w.s.147 of the I.T. Act was passed without issue of notice u/s 143(2). The assessee in its support contended that vide letter dated 22.12.2016 the assessee raised objection to this effect. For ready reference assessee's letter dated 22.12.2016 is enclosed as Annexure-A. 5.8 In this letter, on the 4th line assessee has mentioned as under "At the outset, we have to submit that proceedings pursuant to said notice is without the authority of law." The above objec....
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....ed. 5.10 In view of the above, this ground of assessee is also dismissed." 6. The learned CIT(A) also upheld the initiation of reassessment proceedings under section 147 of the Act in the case of the assessee as well as the additions made by the AO. Being aggrieved, the assessee is in appeal before us. 7. We have considered the rival submissions and perused the material available on record. It is the plea of the assessee that in the present case, the assessment under section 143(3) read with section 147 of the Act is null and void as no notice under section 143(2) of the Act was issued and served upon the assessee. In order to check the veracity of the contention of the assessee, time was granted to the Revenue to call for th....
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..... In addition to the above, learned DR submitted that issuance of notice under section 143(2) of the Act is immaterial since the assessee had participated in the assessment proceedings and therefore non-issuance of notice under 143(2) of the Act will not invalidate the assessment proceedings and the consequent assessment order in view of section 292BB of the Act. 9. We find that a similar issue came up for consideration before the Hon'ble Supreme Court in CIT vs Laxman Das Khandelwal, [2019] 417 ITR 325 (SC), wherein the Hon'ble Supreme Court after noting the importance of issuance of notice under section 143(2) of the Act, as laid down in its earlier decision rendered in ACIT vs Hotel Blue Moon [2010] 321 ITR 362 (SC), held that for sec....