2012 (7) TMI 1163

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....e-tax Act, 1961 (hereinafter referred to as "the Act") for Assessment Years 2005-06 vide his order dated 24.12.2009. 2. First we take up CO No.69/K/2011. The only legal issue raised in this CO of the assesee is that no notice u/s. 143(2) of the Act was served on assessee during the pendency of reassessment proceedings u/s. 148 r.w.s 147 of the Act. For this, assessee has raised following ground no.2: 'For that in spite of no notice u/s. 143(2) of the Act served upon the assessee, sustaining of the reassessment proceedings u/s. 147/147 of the Act by the CIT(A) is opposed to requirement of law, invalid, bad in law and the whole reassessment is liable to be cancelled or annulled." 3. We have heard rival submissions and gone thro....

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.....575,000/- may kindly be treated as return filed disclosing income Ra. 575,000/- in compliance to your notice U/s. 148 ofthe Act. However, your honour is requested to give the reasons recorded which prompted you for issuing the notice u/s 148 at your earliest." From the assessment order, it is clear that AO has acted upon the revised computation as filed in the return of income along with letter dated 22.04.2008 and passed assessment order accordingly. Once AO has acted upon the return filed by assessee he has actually condoned the delay in filing of return in response to notice u/s 148 of the Act, which stipulates the time limit of 30 days and even the reply is beyond that period. Once AO has acted upon the return there is no opti....

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....fficers that, if the assessee has not been served with a notice u/s 143(2) of the Act within the stipulated time he can take it that his return of income has become final and no scrutiny proceedings can be started after that. In response to the procedure for compliance of assessment u/s 143(3) of the Act r.w.s. 147 of the Act, we find Hon'ble Supreme Court in the case of ACIT vs Hotel Blue moon (2010) 321 ITR 362 (SC) has held that the procedure of issuance of notice u/s 143(2) of the Act is mandatory and has to be followed for framing the assessment. The Hon'ble Apex Court has emphasized as under :- (i) While notice u/s 143 (2) is nor necessary if the AO accepts the return as filed, the notice within the prescribed time is mandato....

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....at the Appellate Tribunal failed to appreciate the fact that the assessment was completed only under section 143(1) of the Act and hence the reopening of assessment under section 147 of the Act to consider the correct quantum of interest allowable as deduction in computing the income from house property was correct as the assessee had nor furnished relevant facts and evidence along with the return. Learned counsel further submitted that the Appellate Tribunal erred in its conclusion that in the case of reopened assessment, issue of notice under section 143 (2) of the Act within 12 months is statutory and the Tribunal was also wrong in deleting the issue on technical grounds without going into the merits of the case In respect of qu....