TaxTMI 
TaxTMI 
2012 (6) TMI 927
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....008. 2. At the outset, the learned Counsel for assessee draws our attention to the additional ground raised vide application dated 04.06.2012 which reads as under :- "For that the Ld.AO erred in passing order u/s 147/144 of Income tax Act without issuing notice u/s 143(2) of Income tax Act, and hence the assessment order so passed in void and liable to be quashed." 3. The legal issue raised is that no notice u/s 143(2) of the Act was ever issued either within 12 months from the date of filing of return of income in response to notice u/s 148 of the Act or ever issued. The brief facts leading to the above issue are that original return of income declaring total income of Rs.3,90,330/- which was processed u/s 143(1) of the Act ....
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.... assessment order for the A.Yr. 2005-2006 on 31/12/2008 because of the following reasons : i) The total income shown in the return filed u/s 139(4) of the I.T.Act, 1961 on 28/03/2006 was Rs.3,90,330/-. ii) The revised computation filed along with the petition of the assessee dated 22/04/2008 claiming revised total income of Rs.5,75,000/- was not considered as a return/revised return/return in response to Notice u/s 148 dated 23/01/2008. iii) It is mandatory to put signature on the Return of income filed by the assessee for any Assessment Year for treating it as a valid return as per provisions of section 140 of the I.T.Act, 1961. In the instant case, even the revised computation filed by the assessee on 24/04/2008....
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...."4.That my original return filed on 28/03/2006 which was revised by computation Rs.575,000/- may kindly be treated as return filed disclosing income Ra. 575,000/- in compliance to your notice U/s. 148 of the 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 re....
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....edure w.e.f. 1.4.1989, wherein the Board has in unmistakable terms advised its officers 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 :- (1) While notice u/s 143 (2) is nor necessary if the ....
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....el for the parties. Learned counsel appearing for the Revenue submitted that 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 if 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 g....