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2020 (2) TMI 314 - AT - Income TaxValidity of re-assessment proceedings - No notice under section 143(2) issued within the time as prescribed - HELD THAT - No fresh return of income was filed in response to the notice under section 148 of the Act, there was no occasion for the Assessing Officer to issue notice under section 143(2) of the Act. It, therefore, goes that subsequent to the statement of the assessee in response to the notice under section 148 of the Act that the original return may be treated as a return in response to notice under section 148 of the Act, there was no notice under section 143(2) of the Act. This fact situation is squarely covered by the addition of the Hon ble jurisdictional High Court in the case of Jai Shiv Shankar Traders Private Limited 2015 (10) TMI 1765 - DELHI HIGH COURT . Further the Ld. CIT(A) placed reliance on the decision of the in the case of Tilak Raj Satija 2013 (8) TMI 924 - ITAT DELHI which, while placing reliance on the decision of the Delhi High Court in the case of Alpine Electronics Asia Private Limited vs. DCIT 2012 (1) TMI 100 - DELHI HIGH COURT laid down that in view of the legal fiction created by section 148 of the Act that a return filed under that section is to be treated as one under section 139, proviso to section 143(2) of the Act also applies to a return filed in response to notice under section 148 of the Act and no assessment can be made, if the notice under section 143(2) of the Act is not served within the time as prescribed by the proviso to section 143(2) of the Act. - Decided against revenue
Issues:
Challenge to order by Revenue & cross-objection by Assessee on re-assessment validity. Analysis: 1. The Revenue challenged an order by the Commissioner of Income Tax (Appeals) regarding the assessment year 2005-06 for the Delhi Metro Rail Corporation Ltd. The assessee also filed a cross-objection disputing the validity of the re-assessment proceedings. 2. The assessee initially declared a total loss for the year, which was adjusted by the Assessing Officer. Subsequently, a notice under section 148 of the Income Tax Act was issued, but not served. The assessee argued that their original return should be considered as a response to the notice. The income was then assessed with certain additions. 3. The assessee appealed to the Commissioner of Income Tax (Appeals) challenging the additions and raised a new ground regarding the lack of notice under section 143(2) of the Act, citing legal precedent. 4. The Assessing Officer contended that the assessee did not object to the lack of notice under section 143(2) during the reassessment proceedings. It was also highlighted that no fresh return was filed in response to the notice under section 148, just a statement from the assessee. 5. The Commissioner of Income Tax (Appeals) referred to legal precedents and concluded that the absence of notice under section 143(2) rendered the assessment null and void due to the special circumstances of the case. 6. The Revenue appealed the Commissioner's decision, while the assessee filed cross-objections arguing that the reassessment was merely a change of opinion. 7. Legal representatives for both parties cited relevant case law to support their arguments, emphasizing the importance of notice under section 143(2) in such cases. 8. Upon review, the Tribunal found that the situation was in line with the High Court's decision in a similar case. The legal fiction created by section 148 was also considered, stating that the proviso to section 143(2) applies to returns filed under section 148. 9. The Tribunal upheld the Commissioner's decision based on established legal principles. Consequently, the Revenue's appeal and the assessee's cross-objection were both dismissed as lacking merit. 10. The final order was pronounced, dismissing both the Revenue's appeal and the assessee's cross-objection. This detailed analysis covers the issues, arguments, legal precedents, and the Tribunal's decision in the judgment.
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