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TMI Blog2020 (10) TMI 1359X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessing officer. Where the return of income has been filed u/s 139 or in response to notice u/s 142(1), where the Assessing officer finds that there are certain matters which require explanation by the assessee, then in such cases, he has to comply with the provisions of section 143(2). The assessee by filing the return of income and not claiming the carry forward of losses pertaining to A.Y 2005-06 has admitted to the wrong claim made and assessed earlier. Thereafter, there assessment has been completed u/s 147 where the only finding of the A.O is that only losses for A.Y 2013-14, and not of any earlier years, can be carried forward accepting the very position taken by the assessee in the return so filed on 12.12.2018. Therefore, in the facts of the present case, where the return filed by the assessee has been accepted and the reassessment order has been passed u/s 147accepting the returned income and there is no variation or addition made by the Assessing officer to the returned income, we do not see any necessity for the Assessing Officer to call for the explanation from the assessee and for the purposes, issue notice u/s 143(2) of the Act. Thus where the reassessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s issued on 14.06.2017which was duly served on the assessee-company on 16.06.2017. In response to the same, the assessee-company did not file any return of income and accordingly, notice U/s 142(1) was issued on 11.12.2018 as to why the assessment should not be completed U/s 144 as no return was filed by the company in compliance to notice U/s 148 of the Act. In response to notice u/s 142(1), the assessee company submitted that it has filed its return of income on 12.12.2018 in compliance to the notice U/s 148 of the Act. The Assessing officer held that since return of income was filed much beyond the statutory time period of 30 days of having received the notice issued U/s 148 on 16.06.2017, the same cannot be given any cognizance. The AO accordingly proceeded to pass the best judgment assessment U/s 144 r.w.s. 143(3)/147 allowing only the current year loss of Rs. 1,87,60,143/-, as originally assessed u/s143(3), which was allowed to be carry forward to the subsequent assessment years. 4. Against the aforesaid order and findings of the AO, the assessee carried the matter in appeal before the ld. CIT(A). The ld. CIT(A)returned the finding that no substantive grievance arise to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -14, was shown at Rs. 1,88,72,993/-, further in Schedule CFL of the return of income, i.e Details of Losses to be carried forward to future years (copy enclosed as Annex to this order). the assessee only claimed carry forward of the loss of Rs. 1,88, 72,993/- for the A Y 2013-14 i.e, the assessee did not claim any losses of earlier years for carry forward in the return filed in response to notice u/s148. Since in the impugned order u/s 148, the only finding of the A.O is that only loss for A.Y 2013-14, and not of any earlier years, can be carried forward, which is the very position taken by the assessee in the return u/s 148 filed on12.12.2018, no substantive grievance arises to the assessor the order under appeal. The technical objection to issue of notice U/s 148, are therefore rendered infructuous. Accordingly grounds 1 and 2 of appeal are dismissed as infructuous. 7. We have heard the rival contentions and perused the material available on record. As per the Assessing officer, in compliance to notice u/s 148, no return of income has been initially filed and thereafter, in response to notice u/s 142(1), the return of income which has been filed on 12.12.2018 is much bey ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 or in response to notice u/s 142(1), where the Assessing officer finds that there are certain matters which require explanation by the assessee, then in such cases, he has to comply with the provisions of section 143(2) of the Act which reads as under: 2) Where a return has been furnished under section 139, or in response to a notice under sub-section (1) of section 142, the Assessing Officer or the prescribed income-tax authority, as the case may be, if, considers it necessary or expedient to ensure that the assessee has not understated the income or has not computed excessive loss or has not under-paid the tax in any manner, shall serve on the assessee a notice requiring him, on a date to be specified therein, either to attend the office of the Assessing Officer or to produce, or cause to be produced before the Assessing Officer any evidence on which the assessee may rely in support of the return. 9. As per the aforesaid provisions, the legal necessity to issue notice u/s 143(2) arises where the Assessing Officer considers it necessary or expedient to ensure that the assessee has not understated the income or has not computed excessive loss or has not under-paid the t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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