TaxTMI 
TaxTMI 
2019 (2) TMI 2136
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....cer (AO) under S. 144 r.w.s. 147 of the Income Tax Act, 1961 (the Act) concerning AY 2009-10. 2. The grounds of appeal raised by the Revenue read as under: "(1) The Ld.CIT (A) has erred in law and on facts in holding that the reassessment completed is bad in law for the reason of non-issuance of notice u/s 143(2) of the Act, because the assessee had never raised such objection before completion of the assessment proceedings thus section 292BB of the Act is applicable in the case of assessee. (2) The Ld.CIT (A) has erred in law and on facts in holding that the initiation of reassessment proceedings was not in accordance with the provisions of law as there was no discussion on the issue in the original assessment order and no details we....
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....148 of the Act. Therefore, the jurisdiction assumed for completion of re-assessment is bad in law. The learned AR vehemently contended that the assessment finalized under s. 143(3) of the Act r.w.s. 147 is not sustainable in the absence of fulfillment of mandatory requirement of issuance of notice under s. 143(2) of the Act. The learned AR also referred to the order of the CIT (A) to submit that the assessment records were gone through by the first appellate authority and it was categorically found that notice under s. 143(2) of the Act was never issued. The learned AR accordingly submitted that in view of series of decisions of various High Courts including the decision of Hon'ble Gujarat High court in the case of CIT vs. Sukhini P. Modi r....
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.... anything to contradict the allegation of non-issuance of notice. It will be appropriate to reproduce the relevant finding of the first appellate authority in this regard: "4.2. I have considered the facts of the case and submission made by the appellant. It has been noticed that in this case notice u/s. 148 of the I.T. Act have been issued on 18.3.2014 to file the return of income and incompliance thereto the appellant vide his reply in Tapal on 24.4.2014 has stated that the original return filed by him on 17.12.2009 vide acknowledgement No. 0024600236 may be treated as return filed in compliance to the notice issued u/s. 148 of the I.T. Act. He also enclosed a copy of the acknowledgment of the original return of income filed. The a....
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....h the provisions of law. Therefore, the reassessment completed is bad in law. Reliance is placed on the following judgments. - The Hon'ble ITAT, Delhi Bench in the case of DCIT Vs. Silver Line in ITA No. 1809,1504,1505 and 1506/Del/2013 dtd. 26.9.2014 has held that non issue of notice u/s. 143(2) renders u/s. 147 assessment void. Section 292BB does not apply. If there is a conflict of judicial opinion the view in favour of the assessee must be taken. - The Hon'ble ITAT Delhi in the ease of UKT Software Technologies Pvt. Ltd. Vs. ITO Wd-18(1), New Delhi in ITA No. 5293 & 5294/Del/2010 dtd. 11.2.2011 has held that if the assessment is framed u/s. 143(3) either read with Section 158 BC or Section 147 it is mandatory for....
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....ax Case (Appeals) No. 1183 and 1186 of 2006 dtd. 3.9.2012 has held that even where assessee requested AO to treat the original return as one in response to Section 148 proceedings notice u/s. 143(2) was mandatory otherwise reassessment would be bad in law. - The Hon'ble Bombay High court in the case of ACIT Cir.2(1), Panaji Vs. Jeno Pharmaceutieals Ltd. in Tax Appeals No. 75 to 78 of 2012 dtd. 14.2.2013 has held that notice u/s. 143(2) is mandatory and in absence of such service AO cannot proceed to make an inquiry on return file in compliance with notice issued u/s. 148. - The Hon'ble Madras High Court in the case of CIT Vs. K.S. Mangudi (2008) 304 ITR 388 and also in other case namely CIT Vs. M. Chellappan (2006) 2....
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....ssessment order passed in pursuance thereto was also cancelled. - The Hon'ble ITAT Bangalore in the case of Shri G.N. Mohana Raju Vs. ITO in ITA No. 242 and 243/Bang/2013 dated November, 2014 has also held that in absence of issuance of issue of valid notice u/s. 143(2) of I.T. Act the assessment renders it invalid and the ITAT quashed the reassessment. - The Hon'ble Gujarat High Court in the case of CIT Vs. K.M. Ravji in Tax Appeal No. 771/2012 dtd. 18.7.2011. - The Hon'ble Gujarat High Court in the case of CIT Vs. Panorama Builders Pvt. Ltd. in Tax Appeal No. 435/2011 dtd. 30.8.2012. In view of the aforesaid discussion, the ground of appeal is allowed." 7. In view of the decision of the Hon'ble Guj....