TaxTMI 
TaxTMI 
TaxTMI 
2025 (6) TMI 1213
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....assed u/s 143(3) r.w.s. 147 of the Act pertaining to assessment year 2011- 12. 2. In Ground No.2, the assessee has challenged the validity of reassessment order on the ground that no notice u/s 143(2) was issued before completing the assessment though the assessee has filed the return of income. 3. Before us, Ld.AR for the assessee submitted that in the instant case, the notice u/s 148 of the Act was issued on 30.03.2018 by the ITO, Ward-1, Bhiwani. In response to the said notice, in terms of the letter dated 11.12.2018, the assessee filed return of income and requested for the supply of reasons recorded. The AO has supplied reasons thereafter, the assessee filed the objections against the re-opening of the assessment which were dealt wit....
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....o placed at pages 38 of the Paper Book. In response to the said notice, the assessee vide letter dated 11.12.2018 filed before the AO stated that the return of income filed u/s 139(1) on 25.09.2011 be treated as the return filed in response to the notice u/s 148 of the Act and alongwith the said letter, a complete set of income tax return filed for AY 2011-12 u/s 139(1) was enclosed. In the said letter, it was further requested by the assessee that the reasons recorded before issue of notice u/s 147 of the Act be supplied. The relevant portion of the letter filed by the assessee was extracted as under:- 6. It is also observed by us that the AO in response to such letter has supplied the reasons to the assessee on the next day i.e. on 12.12....
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....e return as provided under Section 143(i)(a). The assessing officer has to complete the assessment under Section 143(3) only. In case of default in not filing the return or not complying with the notice under Sections 143(2)/142, the assessing officer is authorized to complete the assessment ex-parte under Section 144. Clause (b) of Section 158 BC by referring to Section 143(2) and (3) would appear to imply that the provisions of Section 143(1) are excluded. But Section 143(2) itself becomes necessary only where it becomes necessary to check the return, so that where block return conforms to the undisclosed income inferred by the authorities, there is no reason, why the authorities should issue notice under Section 143(2). However, if an as....
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....ers to applicability of the proviso thereto cannot be exclude. We may also notice here itself that the clarification given by CBDT in its circular No.717 dated 14 August, 1995, has a binding effect on the department, but not on the Court. This circular clarifies the requirement of law in respect of service of notice under sub-section (2) of Section 143 of the Act. Accordingly, we conclude even for the purpose of Chapter XIV-B of the Act, for the determination of undisclosed income for a block period under the provisions of Section 158 BC, the provisions of Section 142 and subsections (2) and (3) of Section 143 are applicable and no assessment could be made without issuing notice under Section 143(2) of the Act. However, it is contended by S....
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....#39;so far as may be apply' indicates that it is not expected to follow the provisions of section 142, sub-sections (2) and (3) of section 143 strictly for the purpose of block assessments. We do not agree with the submissions of the learned counsel for the revenue, since we do not see any reason to restrict the scope and meaning of the expression 'so far as may be apply'. In our view, where the Assessing Officer in repudiation of the return filed under section 158BC(a) proceeds to make an enquiry, he has necessarily to follow the provisions of section 142, sub-sections (2) and (3) of section 143." The aforesaid judgment of Hon'ble Apex Court clearly explains that the assessment proceedings in respect of search cases u/s 1....