2025 (3) TMI 653

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....144B is unlawful having been passed without the issue of Notice u/s 143(2) of the Act;" 03. The facts in brief are that the assessee did not file any return of income for the instant assessment year. The proceeding u/s 147 of the Act were initiated by issuing notice u/s 148 of the Act, which were duly served upon the assessee on 24.03.2021. The case of the assessee was reopened on the basis of information received on financial transactions/ activities relating to the assessee. According to the ld. AO, the assessee did not file any return of income in response to Section 148 of the Act. Subsequently, the notice u/s 142(1) of the Act, along with questionnaire was issued on 07.10.2021, fixing the date of hearing on 22.10.2021. When there was ....

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....as never declared invalid by the ld. AO and in fact, while computing the income in the assessment order page no.6, the income was taken as per return filed u/s 148 of the Act of Rs. 3,92,650/- and thereafter, the addition was made and total income was assessed at Rs. 2,93,90,846/-. Therefore, the ld. AO has grossly erred in not issuing notice u/s 143(2) of the Act and framing the assessment u/s 147 read with section 144B of the Act vide order dated 27.03.2022, which is invalid and void ab initio. The ld. AR therefore prayed that the ground no.6 of the grounds of appeal may kindly be allowed by quashing the assessment framed by the ld. Assessing Officer. 06. The ld. DR, on the other hand, submitted that assessee has not filed any return of ....

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....sessing the total income at Rs. 2,93,90,846/-. We also note that the Hon'ble Supreme Court has extended all the limitation under the Income Tax Act and also under the other Acts in case of Miscellaneous Application No. 665 of 2021 in SMW(C) No. 3 of 2020, which excluded the period till 31st May, 2022, from the period of limitation. Therefore, the arguments of the ld. DR that return was filed on 01.03.2022, is devoid of any merit as the assessee has filed the return even during the period which was order to be excluded from the limitation period. Therefore, in our opinion, the issuance of notice u/s 143(2) of the Act was mandatory for the ld. AO to assume jurisdiction under the Act and framed the assessment accordingly. It was also perti....