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| DATE: | February 26, 2011 (Date of publication) |
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| Click here to download the judgement (ukt_software_1432_notice_148.pdf) |
Non-issue of s. 143(2) notice renders s. 147 assessment order invalid
The AO passed an assessment order u/s 143(3) r.w.s. 147 without issuing a notice u/s 143(2). The assessee challenged the reassessment order on the ground that the non-issue of the s. 143(2) notice rendered the order void. HELD upholding the challenge:
The law relating to validity of the assessment proceedings in absence of issuance of notice u/s 143(2), in a case where the AO proceeded to frame the assessment in pursuance of a return is well established. If the assessment is framed u/s 143 (3), either read with s. 158 BC or s. 147, it is mandatory for the AO to issue notice u/s 143 (2). The issuance and service of notice u/s 143 (2) is mandatory and not procedural. If the notice is not served within the prescribed period, the assessment order is invalid (Pawan Gupta 318 ITR 322 (Del), Hotel Blue Moon 321 ITR 362 (SC) & C. Palaniappan 284 ITR 257 (Mad) followed).
see again same problem of 143(2).
AOs do not seem to understand the natural justice principle.
CBDT need to oversee . Else , revenue would be a laughing stock.
I wonder whether panel advocates/CAs too are unaware of natural justice procedure..very sad
pls take corrective action, else courts might award damages that need to be paid the failing officers concerned…now it is a serious warning from courts as the court time is also getting badly wasted.