2026 (5) TMI 885

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....order dated 24.03.2022 u/s. 147 read with section 144B of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') passed by National Faceless Assessment Centre, Delhi, for AY: 2013-14. 2. At the time of arguments ld. Counsel has pointed out raising the additional ground that the assessment is not completed in accordance with procedure established under the Act and it was submitted that no notice u/s. 143(2) was issued. It comes up that assessee's return was filed on 31.03.2014 declaring total income of Rs. 1,98,600/- and on the basis of information that assessee has made credit entries amounting to Rs. 51,28,000/- in respect of bogus LTCG from sale of shares during the year under consideration the case of assessee was reopened by....

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....coram, had considered the contention of department that as no return of income was filed in response to notice u/s. 148 of the Act, so non-compliance of notice u/s. 143(2) of the Act is not detrimental. The Bench had decided the issue against the department by following findings: "3. Thus the case of department as per the AO and the ld. DR is that as assessee has not filed ROI in response to the notice u/s. 148 of the Act so non compliance of notice 143(2) of the Act is not detrimental. But the law seems to be otherwise settled and extensively discussed in a co-ordinate bench decision in Anil Aggarwal HUF versus ITO, Ward 28(1), New Delhi ITA No. 4594/Del/2024 order dated 30.07.2025, as relied by ld. Counsel and for completeness an....

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..... 7. In rebuttal the Ld. Counsel for the assessee submitted that the Hon'ble Jurisdictional High Court in the case of PCIT vs. Staunch Marketing Pvt. Ltd. (supra) held that even in ex parte assessment when once return is filed by the assessee in response to notice issued u/s. 148 of the Act issuance of notice u/s. 143(2) is mandatory even though the assessee failed to furnish return u/s. 139 of the Act. Ld. Counsel submits that the Hon'ble High Court held that once return is filed in response to notice u/s. 148 of the Act even ex parte assessment cannot be made without issue of notice u/s. 143(2) of the Act. 8. Heard rival contentions, perused the orders of the authorities below and the case laws relied on by the assessee.....

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....r the question on an appeal filed by the Revenue. The Hon'ble High Court further affirming the order of the Tribunal held as under: "14. In any event, factually the Assessee filed a return pursuant to notice issued u/s. 148 of the Act, notwithstanding that it may not have filed a return in the first place u/s. 139 of the Act for the assessment year in question. Once a return is filed notice u/s. 143(2) of the Act to the assessee is mandatory prior to framing an assessment. The question of framing an assessment ex parte without even issuing a notice u/s. 143(2) of the Act did not arise. The mandatory nature of that requirement is settled not only by the decision of the Supreme Court in the case of ACIT Vs. Hotel Blue Moon (supra) bu....