2009 (9) TMI 139 - HC - Income Tax

Validity of notice issued u/s 143(2) which was served after office hours on last date - Thus, there was no authorised person to receive the notice at the premises as the Inspector reached much after the working hours. The Inspector affixed the notice on the front gate of the premises of the assessee-company. It is rightly held by the Income-tax Appellate Tribunal that it was not a proper service of the notice upon the assessee. - Since September 30, 2002, was the last date by which such a notice under section 143(2) of the Act had to be served, the proceedings which were taken thereafter were clearly time barred and without jurisdiction. Held that assessment was not valid that assessee appeared in proceedings is not relevant

Summary

The High Court judgment in 2009 (9) TMI 139 - DFLHI HIGH COURT, delivered by A. K. SIKRI and VALMIKI J. MEHTA JJ., involves an in-depth analysis of a case where the Assessing Officer failed to serve a notice under section 143(2) of the Income Tax Act within the required 12-month period. Despite the appellant's appearance in the assessment proceedings, the court ruled that the subsequent proceedings were time-barred and without jurisdiction due to the improper service of the notice. The judgment also discusses the mandatory nature of section 143(2) and the implications for block assessment proceedings under Chapter XIV-B. The court concluded that the provision is mandatory, and if the Assessing Officer accepts the return of undisclosed income without further investigation, a notice under section 143(2) is not required. Ultimately, the court dismissed the appeal, stating that no substantial question of law arises for consideration.