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TaxTMI 
TaxTMI 
TaxTMI 
2026 (5) TMI 92
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....Income Tax Act, 1961 (hereinafter referred to as 'the Act') relating to the Assessment Year 2017-18. 2. The Grounds of Appeal raised by the Assessee are as follows: 1. The ld. CIT(Appeals) erred in law and on facts of the case, in upholding the validity of the assessment despite non-issuance of any notice u/s.143(2). 2. The ld. CIT(Appeals) erred in law in remanding the matter back to the Assessing Officer for denovo adjudication and thereby erred in not to delete addition of Rs. 2,79,36,163/- despite all materials were produced before CIT(A), without appreciating the facts and law of the case properly. 3. The appellant craves leave to add, amend or alter the grounds of appeal at the time of hearing, if need ar....
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....d on 30-12-2019. 6. As per the Ld. Counsel for the assessee since return of income was filed by the assessee, the AO was mandatorily required to issue notice u/s 143(2) of the Act for assuming valid jurisdiction to frame assessment. 7. For adjudicating the issue it is imperative to understand the objective / purpose of issuing notice u/s 143(2) of the Act and juxtapose the same with the facts of the present case. 8. The procedure for scrutiny assessment u/s 143(3) of the Act, as has been done in the present case, begins with return filed by assesses either u/s 139(1) of the Act or in response to notice u/s 142(1) of the Act, being considered for scrutiny. As per section 142(1) of the Act, assesses who have not filed return of incom....
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....nder this sub-section for the purposes of this clause may also be served by the prescribed income-tax authority, (ii) to produce, or cause to be produced, such accounts or documents as the Assessing Officer may require, or (iii) to furnish in writing and verified in the prescribed manner information in such form and on such points or matters (including a statement of all assets and liabilities of the assessee, whether included in the accounts or not) as the Assessing Officer may require : 9. After the return of income is filed either u/s 139(1) of the Act or 142(1) of the Act the process of scrutinizing the same begins by issuing notice u/s 143(2) of the Act, which virtually puts the assessee to notice that his/her retu....
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....ce as the Assessing Officer may require on specified points, and after taking into account all relevant material which he has gathered, the Assessing Officer shall, by an order in writing, make an assessment of the total income or loss of the assessee, and determine the sum payable by him or refund of any amount due to him on the basis of such assessment: (ii) issued under clause (it) of sub-section (2), or as soon afterwards may be after hearing such evidence as the assessee may produce and such other evidence as the Assessing Officer may require on spec points, and after taking into account all relevant material which has gathered, the Assessing Officer shall, by an order in writing, mais an assessment of the total income or loss....
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.... provided u/s 139(1) of the Act and if not filed even before the end of the relevant assessment year then notice u/s 142(1) of the Act can be issued directing the assesses to file return within stipulated time. Before scrutinizing the returns for their correctness the assesses are to be put to notice by issuing notice u/s 143(2) of the Act .This notice is to be issued within six months from the end of the relevant financial year in which return of income is filed by the assessee and thereafter after making all inquiries assessment is to be framed within two years from the end of the relevant assessment year thus providing sufficient reasonable time for making all necessary inquiries for framing a proper assessment of income. 14. The obje....
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....O. about the filing of return of income on 11-12-2019. The impugned assessment year before us being A.Y 2017-18, as per section 153 of the Act the AO was required to pass order u/s 143(3) of the Act within twenty-one months from the end of the relevant assessment year, i.e by 31-12-2019. The A.O. rejected the return filed by the assessee and passed order u/s. 144 of the Act on 30-12-2019, when the order was getting time barred as per section 153 of the Act. 16. It is evident from the facts above that the AO proceeded to frame best judgement assessment u/s 144 of the Act when despite repeated opportunities given, the assessee failed to file return of income in response to notice u/s 142(1) of the Act. As the facts above demonstrate the as....