2012 (7) TMI 621 - AT - Income Tax

Assessment u/s 143(3) - assessee contented that there being no notice to the assessee - Held that - No where in the assessment proceedings before the AO, the assessee appeared to have disputed about non-service of notice and the validity of the assessment order. However, the issue non-receipt of notice was agitated before the learned CIT(A), who called for a remand report from the AO in this behalf. The AO filed his remand report before the CIT(A) and confirmed that the notice under Section 143(2) was served on the assessee on 17.3.2004. Presence of the assessee s representative and Committee official from time to time and also filing written submissions on different dates as mentioned in the assessment order, carry undisputable fact that the assessee is present and fully aware of the proceedings being taken place in the department, and therefore the assessee should be estopped from raising the issue that the assessment was framed without any statutory notice, and therefore not convinced that no notice under Section 143(2) of the Act was issued and served - in favour of assessee.

Summary

Issues:
Validity of assessment order under Section 143(3) without notice under Section 143(2).

Analysis:

Issue 1: Validity of assessment order under Section 143(3) without notice under Section 143(2)

The appeal was against the order of the CIT(A)-IV for the A.Y.2004-2005. The Tribunal recalled the matter to adjudicate ground no.2, which was left undecided previously. The issue revolved around the validity of the assessment order passed under Section 143(3) without proper notice to the assessee. The assessee, a Marketing Committee, claimed its status as "AOP" and filed for deduction under Section 80P of the Act. The AO issued notices under Section 143(2) and 142(1) and conducted assessment proceedings. The CIT(A) rejected the claim of non-receipt of the notice under Section 143(2) based on the AO's confirmation of issuing the notice. The assessee contended that no concrete evidence proved the receipt of notices. The Tribunal analyzed the facts and concluded that the assessee's participation in hearings and submissions indicated awareness of the proceedings, estopping them from disputing the notice's service. The Tribunal found no perversity in the Revenue authorities' findings and dismissed the appeal, confirming the validity of the assessment order under Section 143(3).

In conclusion, the Tribunal upheld the assessment order's validity under Section 143(3) despite the dispute over the notice under Section 143(2) service, emphasizing the assessee's active participation in the proceedings as evidence of awareness, leading to the dismissal of the appeal.