2005 (1) TMI 372

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..... al reads as under: "On facts and circumstances prevailing in the case and as per provisions of law, it be held that proceedings commenced by issue of notice under s. 143(2) of the Act and regular assessment order passed under s. 143(3) of the Act is barred by limitation." 3. Briefly stated, the facts of the case are that the return of income for the assessment year under consideration was origin .....

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..... to the assessee on 6th Jan., 1998, by RPAD which was received by him on 8th Jan., 1998. The AO also noted that an acknowledgement for the receipt of the said notice was available on record. According to the AO, notice under s. 143(2) was served on the assessee well within the time-limit prescribed by the IT Act. He, therefore, held that the assessment proceedings were valid and not time-barred as .....

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..... e parties at length and have perused the orders of the authorities below. In this case, assessment records were summoned in order to verify the rival contentions. On verification of original records, it was noticed that no notice under s. 143(2) of the Act was issued to the assessee on 6th Jan., 1998, as per order-sheet entry. It is further clear from the order-sheet entry that notice under s. 143 .....

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..... he assessee, the assessee had received the notice under s. 143(2) of the Act on 8th Jan., 1996, for the asst. yr. 1996-97. It is true that the assessment proceedings under s. 143(3) were in progress for the asst. yr. 1996-97. In fact, the order under s. 143(3) for asst. yr. 1996-97 was passed on 27th Feb., 1998, i.e., after the date mentioned on the notice under s. 143(2) issued for the same year. .....

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..... n. Accordingly, I quash the assessment order dt. 16th Feb., 2000, as the AO has not complied with the mandatory provisions of s. 143(2) of the Act. 8. The next ground of appeal pertains to charging of interest under ss. 234B and 234C of the Act. This ground of appeal is consequential in nature and, therefore, I hold accordingly. 9. In the result, the appeal is allowed.
Case laws, Decisions, .....

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