The Tax Publishers2020 TaxPub(DT) 5028 (Chd-Trib)

INCOME TAX ACT, 1961

Section 147

The legal requirement is that the notice should have been issued. Merely because it is available on file cannot be said to be the legal requirement. In instant case, the CIT (A) failed to address the specific legal requirement as to whether notice under section 143(2) was issued to assessee or not, therefore, the matter with regard to validity of reassessment order passed under section 147 was remanded to the CIT (A) with a direction to pass a speaking order in accordance with law addressing the specific grievance.

Reassessment - Validity - Non-issuance of notice under section 143(2) -

Assessee-company challenged validity of reassessment order passed under section 147 on the ground that the statutory notice under section 143(2) was never issued and served upon it. On perusal of assessment records, CIT(A) found that the notice under section 143(2) along with the questionnaire was available on file. He further, found that the assessee did not challenge the validity of assessment proceedings, during entire assessment proceedings and kept attending the proceedings. Accordingly, he was of the view that the contention of the assessee did not carry any force as the assessee had not challenged the same at the time of assessment proceedings. Held: The legal requirement is that the notice should have been issued. Merely because it is available on file cannot be said to be the legal requirement. Further, CIT(A) failed to address the specific legal shortcoming, which would go to the root of the matter. In view of the interests of justice, a categorical finding would have to be made available as to whether notice under section 143(2) was issued to the assessee or not. Accordingly, the order of the CIT (A) was set aside and the matter was remanded to the CIT (A) with a direction to pass a speaking order in accordance with law addressing the specific grievance.

REFERRED :

FAVOUR : Matter remanded

A.Y. : 2009-10



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