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Issues:
1. Validity of notice under section 143(2) and assessment order. 2. Competency of the appeal filed by the assessee challenging the assessment order. Analysis: Issue 1: Validity of notice under section 143(2) and assessment order The appeal was filed by the assessee against the order of the Commissioner of Income-tax (Appeals) mainly on the grounds that the assessment order passed by the Assessing Officer was illegal due to the notice under section 143(2) being issued beyond the period of limitation. The Assessing Officer had issued a notice under section 148 to assess the unexplained investment of Rs. 3,00,000 in FDRs by the assessee. The notice under section 143(2) was issued after the statutory period of limitation. The assessee contended that this invalid notice rendered the assessment and demand raised therein null and void. The Tribunal, citing precedents, held in favor of the assessee, quashing the assessment and demand due to the invalid notice under section 143(2). Issue 2: Competency of the appeal filed by the assessee The Departmental Representative for the Revenue argued that since the assessee voluntarily surrendered the amount in question before the Assessing Officer, the appeal challenging the assessment was incompetent. The Representative contended that the assessee could not challenge the validity of the assessment order based on the notice under section 143(2) being served beyond the statutory period. Citing legal precedents, the Representative argued that the appeal should be dismissed on this ground alone. However, the Tribunal rejected this argument, emphasizing that the invalid notice under section 143(2) deprived the Assessing Officer of jurisdiction to make the assessment under section 143(3) read with section 147. Therefore, the surrender obtained during the invalid assessment proceedings was deemed improper and invalid. The Tribunal allowed the appeal filed by the assessee, setting aside the Commissioner of Income-tax (Appeals)'s decision to sustain the impugned addition. In conclusion, the Tribunal ruled in favor of the assessee, holding that the notice under section 143(2) issued after the statutory period of limitation rendered the assessment and demand raised invalid. The Tribunal rejected the Revenue's argument that the appeal was incompetent due to the voluntary surrender made by the assessee, emphasizing that the invalid notice deprived the Assessing Officer of jurisdiction to make the assessment. Consequently, the Tribunal allowed the appeal filed by the assessee, setting aside the addition made by the Assessing Officer.
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