The Tax Publishers2019 TaxPub(DT) 5081 (SC) : (2019) 417 ITR 0325 : (2019) 310 CTR 0008 : (2019) 266 TAXMAN 0171

INCOME TAX ACT, 1961

Section 292BB

For section 292BB to apply, notice must have emanated from department. It is only infirmities in manner of service of notice that section seeks to cure section is not intended to cure complete absence of notice itself and thus, issue of notice under section 143(2) for completion of regular assessment is a statutory requirement as per provisions of Act and non-issuance thereof is not a curable defect. Therefore, appeal of Revenue was dismissed.

Notice deemed to be valid under certain circumstances - Non issue of notice under section 143(2) - Addition on account of unexplained cash and unexplained jewellery -

Assessee was carrying a business of brokerage. Search and seizure operation was conducted under section 132 and assessment was completed under section 143(3) read with section 153. Certain sum was added on account of unexplained cash under section 69 and another sum on account of unexplained jewellery. CIT(A) deleted the said addition. Assessee filed cross-objection on the ground of jurisdiction of AO regarding non-issue of notice under section 143(2). Tribunal and High Court upheld the cross-objection and quashed the entire reassessment proceedings on the finding that the same stood vitiated as AO lacked jurisdiction in absence of notice under section 143(2). Held: According to section 292BB, if assessee had participated in proceedings, by way of legal fiction, notice under section 143(2) would be deemed to be valid even if there be infractions as detailed in said section. Scope of provision is to make service of notice having certain infirmities to be proper and valid if there was requisite participation on part of assessee. For section 292BB to apply, notice must have emanated from department. It is only infirmities in manner of service of notice that section seeks to cure. Section is not intended to cure complete absence of notice itself and thus, issue of notice under section 143(2) for completion of regular assessment is a statutory requirement as per provisions of Act and non-issuance thereof is not a curable defect.

REFERRED :

FAVOUR : In assessee's favour

A.Y. :



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