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2013 (12) TMI 745 - HC - Income TaxService of notice u/s 143(2) for the purpose of reassessment u/s 147 - The stand taken by the revenue is that the notice issued under Section 142(1) dated 14th August, 2008 should be treated as omnibus or a general notice. It is accordingly submitted that this notice under Section 142(1) dated 14th August, 2008, should be regarded as a notice issued under Section 143(2) of the Act. Bar of limitation - Held that - The notice under Section 142 (1) dated 14th August, 2008 was issued and served beyond the period of one year from the date of filing of return i.e. 15th June, 2007 - It was barred by limitation. The contention of the appellant that notice under Section 142 (1) can be regarded as a notice issued under Section 143(2) of the Act cannot be accepted - Following Commissioner of Income Tax versus Lunar Diamonds Ltd. 2005 (3) TMI 33 - DELHI High Court - service of notice under Section 143(2) of the Act is mandatory - for proceedings under Section 147 of the Act, notice under Section 143(2) is required and is mandated except in cases covered by the first and second proviso to Section 148 of the Act the facts of the case are not covered by the exceptions carved out in the two provisos as the return filed on or after 1st October, 2005 - Section 292BB does not help the Revenue, as the respondent-assessee had objected to the reassessment proceedings on the ground of non-issue and service of notice under Section 143(2) before the Assessing Officer Decided against the revenue.
Issues involved:
Assessment year 2004-2005, Notice under Section 147/148 of the Income Tax Act, 1961, Validity of notice under Section 142(1), Requirement of notice under Section 143(2), Interpretation of Section 292BB, Reassessment proceedings objection. Analysis: 1. Validity of Notice under Section 142(1): The appellant argued that the notice issued under Section 142(1) should be considered as a notice under Section 143(2). However, the High Court ruled that the notice under Section 142(1) dated 14th August, 2008 was time-barred as it was issued beyond one year from the date of filing the return. The court emphasized that the notice under Section 143(2) is mandatory for proceedings under Section 147 unless exceptions apply, which were not relevant in this case. 2. Requirement of Notice under Section 143(2): Referring to previous judgments, the court highlighted the necessity of issuing a notice under Section 143(2) in cases of proceedings under Section 147 of the Act. The court cited the case of Commissioner of Income Tax versus Lunar Diamonds Ltd. to emphasize the mandatory nature of the notice under Section 143(2) unless specific exceptions apply. The court also referenced the Supreme Court's ruling in the case of Assistant Commissioner of Income Tax and Another Vs. Hotel Blue Moon, which reiterated the importance of following the provisions of Section 143(2) for block assessment proceedings. 3. Interpretation of Section 292BB: The court noted that Section 292BB did not benefit the Revenue in this case as the respondent-assessee had raised objections regarding the non-issuance and service of notice under Section 143(2) before the Assessing Officer. The court emphasized that the objection recorded in the assessment order itself negated the applicability of Section 292BB to support the reassessment proceedings. 4. Reassessment Proceedings Objection: Considering the arguments and legal precedents, the court concluded that there was no merit in the appeal, leading to its dismissal without costs. The judgment highlighted the importance of adhering to procedural requirements, especially regarding the issuance of notices under relevant sections of the Income Tax Act to ensure the validity of reassessment proceedings. In summary, the High Court's judgment focused on the procedural aspects of the case, emphasizing the mandatory nature of notices under specific sections of the Income Tax Act for reassessment proceedings. The court's detailed analysis of legal precedents underscored the significance of following statutory requirements to maintain the integrity and validity of income tax assessments.
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