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2023 (4) TMI 937 - AT - Income TaxValidity of the assessment order passed u/s 143(3) - alleged failure of the AO in issuing and serving the notice u/s 143(2) of the Act within the prescribed period of limitation - HELD THAT - It is trite law that intimation issued under Section 143(1) of the Act cannot be treated as an assessment order. There are plethora of judicial precedents propounding the aforesaid legal position. Suffice to say in case of ACIT vs. Rajesh Jhaveri Stock Broker (P) Ltd. 2007 (5) TMI 197 - SUPREME COURT has laid down the aforesaid ratio. Thus the contention of learned Authorized Representative that the revised return of income filed after completion of assessment u/s 143(1) is to be treated as non est is unacceptable. Revised return of income was filed within the time prescribed u/s 139(5) of the Act in our view it is a valid return. Proviso to section 143(2) makes it clear that no notice under Section 143(2) of the Act shall be served on the assessee after expiry of six months from the end of the financial year in which the return is furnished. To my understanding section 139 used in section 143(2) of the Act is wide enough to include a revised return filed u/s139(5) of the Act. Therefore the Assessing Officer has time to issue notice before expiry of six months from the end of the financial year wherein the revised return of income was filed. Admittedly the revised return of income was filed on 10.11.2014. Whereas the notice under Section 143(2) of the Act was issued on 28.08.2015 i.e. before expiry of six months from the end of the financial year (F.Y. 2014-15) wherein the revised return of income was filed. The notice issued u/s 143(2) of the Act is within the period of limitation - Thus ground no.1 and additional ground are dismissed.
Issues Involved:
The validity of the assessment order passed under Section 143(3) of the Income-Tax Act, 1961 due to the alleged failure of the Assessing Officer in issuing and serving the notice under Section 143(2) of the Act within the prescribed period of limitation. Issue 1: Validity of Assessment Order The appellant challenged the validity of the assessment order due to the Assessing Officer's alleged failure to issue and serve the notice under Section 143(2) within the prescribed period. The appellant argued that the notice was issued beyond the limitation period, rendering the assessment order invalid. The appellant contended that since the revised return of income was filed after the intimation under Section 143(1) was issued, it should be considered invalid. However, the Departmental Representative argued that the notice was served within the six-month period from the end of the financial year in which the revised return was filed, making it within the limitation period. The Tribunal held that the intimation under Section 143(1) cannot be treated as an assessment order, and the revised return filed within the prescribed time was valid. It was further determined that the notice under Section 143(2) was issued within the limitation period, and the decisions cited by the appellant were deemed inapplicable to the case. Consequently, the Tribunal dismissed the appeal challenging the validity of the assessment order. Key Points: - The appellant challenged the validity of the assessment order due to the alleged failure of the Assessing Officer to issue the notice under Section 143(2) within the prescribed period. - The appellant argued that the revised return of income should be considered invalid as it was filed after the intimation under Section 143(1) was issued. - The Departmental Representative contended that the notice was served within the six-month period from the end of the financial year in which the revised return was filed. - The Tribunal held that the intimation under Section 143(1) cannot be treated as an assessment order and that the revised return filed within the prescribed time was valid. - It was determined that the notice under Section 143(2) was issued within the limitation period. - The decisions cited by the appellant were considered inapplicable to the case, leading to the dismissal of the appeal challenging the validity of the assessment order.
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