TaxTMI 
TaxTMI 
2024 (8) TMI 1042
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....n upholding the assessment under Section 147 without issuing of statutory notice under Section 143(2) of the Act. 2. The Ld. CIT(A) grossly erred in law and facts in upholding the addition n of Rs. 62,50,000/- under Section 68 disregarding the documentary evidences placed on record by the appellant." 3. The assessee filed its return of income for the Assessment Year (A.Y.) 2018- 19 on 25.07.2018 declaring total income at Rs. 45,664/-. The said return was processed under Section 143(1) of the Income Act, 1961. As per the information, the Assessing Officer observed that Vasant Darji Prop. Vijay Enterprise provided various accommodation entries in the form of loan/share premium/purchase etc. through 4 Vijay Enterprises, Vishal Impex, Chamun....
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....on 14.02.2023. In compliance of notice issued under Section 148 of the Act asking the assessee to file the return of income, the Ld. AR submitted that the requirement to issue notice under Section 148 is mandatory as per the Act and not a procedural one and non-issuance of the same and making assessment order is illegal and null. The Ld. AR relied upon the decision of Hon'ble Apex court in the case of ACIT vs Hotel Blue Moon, 321 ITR 362 (SC) and the decision of Hon'ble Delhi High Court in the case of CIT vs. Pawan Gupta, 318 ITR 322 (Del). The Ld. AR, therefore, submitted that the Assessment Order was passed under Section 147 read with Section 144B of the Act. No notice under Section 143(2) of the Act has been issued by the Assessing Offic....
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....o ground no.2 relating to addition of Rs. 62,50,000/- under Section 68 of the Act, the Ld. AR submitted that the Assessing Officer as well as the CIT(A) has not taken into account documentary evidence produced by the assessee before both the Authorities. 8. The Ld. DR submitted that the CIT(A) in paragraph no.7.1 categorically dealt ground no.1. The Ld. DR submitted that the assessee has not filed valid return in response to the notice under Section 148 of the Act issued on 24.03.2024. In fact, the return which was filed by the assessee are filed just few days prior to the assessment under Section 147 of the Act was completed i.e. on 14.02.2023. The assessee's contention that the assessee filed Income Tax return in response to notice under....
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....o the notice under Section 148 of the Act as the assessee has filed the original return of income as mentioned in the return of income acknowledgement dated 14.02.2023. Thus, the CIT(A) has rightly dismissed this ground with the precise observation. Hence ground no.1 is dismissed. 10. As regards the contention of the assessee that Section 143(2) notice is a mandatory notice. In fact, the decision relied by the assessee itself categorically state in case of Hotel Blue Moon (supra) that Section 143(2) of the Act in respect of an assessment is to be completed under Section 143(3) read with Section 158BC of the Act, the same cannot be a procedural in nature, if the notice is not issued and, therefore, requirement of notice under Section 143(2)....