TaxTMI 
TaxTMI 
2026 (1) TMI 1309
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....ssment year 2016-17, wherein the ld. CIT(Appeals) has dismissed assessee's first appeal ex parte. 2. Brief facts state that the assessee filed her return of income for A.Y. 2016-17 on 14.01.2017, declaring total income at Rs. 14,52,315/- as per ITR verification form. Assessee's case was reopened u/s. 147 of the Act by issuance of notice u/s. 148 of the Act dated 30.03.2021 on the basis of information provided by assessee's husband Shri Rajveer Singh in the affidavit filed before Election Commission of India during Election, 2019. According to the assessment order, the details of status of ITRs and taxable income declared in the affidavit by assessee's husband were compared with the records available in ITBA/ITD, which were found matched ....
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....indly treat the return filed by the assessee for the Assessment Year 2016-17 (related to F.Y. 2015-16) return filed on 31.03.2018 u/s. 139 of the Act may kindly be treated as return filed u/s. 148 in response to the above mentioned notice." 3. After considering the material available on record, Assessing Officer completed the assessment and added Rs. 4,00,00,000/- as cash credit u/s. 68 of the Act and Rs. 15,00,000/- as income from other sources, assessing total income at Rs. 4,29,42,320/-. 4. Assessee filed first appeal before learned CIT(Appeals). Assessee remained un-responded before the first appellate authority against various notices issued u/s. 250 of the Act. Learned CIT(Appeals) dismissed assessee's first appeal ex parte and ....
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....utory notice u/s 143(2) of the Act despite the fact that it was duly intimated that the original return filed may be treated as return in response to notice u/s 148 of the Act." 6. Perused the records. Heard learned representative for assessee and learned CIT/DR for revenue. 7. At the very outset, learned representative for assessee has pressed to admit and decide the additional legal ground No. 7 raised vide separate application dated 16.12.2025. The additional ground is admitted. 8. The sum and substance of assessee's grievance raised through additional ground No. 7 is as to whether the entire assessment proceedings completed u/s. 147 of the Act are bad in law for want of issuance of notice u/s. 143(2) of the Act, specifically wh....
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....return. ............................" 11. Perusal of afore-quoted section 143(2) goes to show that the Assessing Officer was mandatorily required to serve statutory notice u/s. 143(2) upon the assessee, if he considered it necessary or expedient to ensure that the assessee had not understated the income or had not computed excessive loss or had not under-paid the tax in any manner. 12. Learned AR for assessee has referred order dated 24.11.2025 passed by the coordinate Bench of ITAT, Bangalore in Intact Developers Pvt. Ltd. vs. DCIT, Central Circle 1(2), Bangalore (ITA No. 823, 824 & 825/Bang/2025 for A.Yrs. 2015-16, 2016-17 and 2017-18), wherein the Tribunal has based its order on the dictum of Hon'ble Supreme Court propound....
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....s, there is no reason, why the authorities should issue notice under Section 143(2). However, if an assessment is to be completed under Section 143(3) read with Section 158-BC, notice under Section 143(2) should be issued within one year from the date of filing of block return. Omission on the part of the assessing authority to issue notice under Section 143(2) cannot be a procedural irregularity and the same is not curable and, therefore, the requirement of notice under Section 143(2) cannot be dispensed with.................................." 14. In view of law laid down by Hon'ble Supreme Court in Hotel Blue Moon (supra) and followed by this Tribunal in Intact Developers (supra), in the instant case, Assessing Officer has omitted to i....