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Issues involved: Appeal against annulment of assessment proceeding under s. 148 u/s 143(2) of IT Act for asst. yr. 1999-2000.
Summary: 1. The Revenue appealed against the annulment of assessment proceeding under s. 148 u/s 143(2) of the IT Act for the asst. yr. 1999-2000. 2. The Revenue contended that the CIT(A) erred in annulling the assessment proceeding under s. 148 purely on technical grounds without considering the merits of the case, specifically regarding the notice under s. 143(2) not being served on the assessee. 3. The assessee, a company engaged in the manufacture and sale of white crystal sugar, filed its return for the asst. yr. 1999-2000, disclosing a net loss. The AO invoked provisions under s. 147 of the Act due to deductions claimed by the assessee, leading to the issuance of notice under s. 148. The assessment was made without serving notice u/s 143(2), resulting in a determined net loss. 4. The assessee raised an additional ground before the CIT(A) stating that in the absence of a mandatory notice under s. 143(2) served within the specified period, the AO lacked jurisdiction to make the assessment under s. 143(3) r/w s. 148, rendering the assessment order void ab initio. 5. The CIT(A) annulled the assessment order under s. 143(3)/148, citing the mandatory requirement of notice under s. 143(2) for completing an assessment. The CIT(A) relied on legal precedents emphasizing the necessity of issuing such notice within the prescribed time limit. 6. The Tribunal upheld the CIT(A)'s decision, emphasizing the mandatory nature of notice under s. 143(2) before making an assessment under s. 143(3) r/w s. 148. Legal judgments were cited to support the requirement of issuing such notice, and the appeal of the Revenue was dismissed. 7. Consequently, the appeal against the annulment of the assessment proceeding under s. 148 u/s 143(2) for the relevant assessment year was dismissed.
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