Assessee filed return on 14.10.2016. Notice u/s. 139(9) of the Act issued upon the assessee on 06.02.2017. Assessee cured defects on 18.02.2017. Subsequently, again, 2nd Defective Notice u/s. 139(9) of the Act issued upon the assessee on 10.07.2017. Assessee cured defects on 20.07.2017. Notice u/s. 143(2) of the Act was issued on 11.08.2018 and Notice u/s. 142(1) of the Act was issued on 31.08.2018. As per Section 143(2) as amended by Finance Act, 2016, Notice u/s. 143(2) of the Act could have been issued within 6 months from the end of the financial year in which the return of income is filed. High Court held that time limit should be reckoned from the date of filing return u/s. 139(1) and not the date of curing defects u/s. 139(9). Thus, in the instant case, due date was 30.09.2017 being within 6 months from the end of the FY in which return is filed (i.e. from 31.03.2017 being end of FY-from 139(1) date 14.10.2016). Thus, Notice u/s. 143(2) of the Act dated 11.08.2018 was held to be time barred and consequently, Notice u/s. 142(1) of the Act dated 31.08.2018 shall also collapse. (AY. 2016-17)
SMC Comtrade Ltd. v. ACIT (2024) 296 Taxman 214 / 336 CTR 609(Delhi) (HC)
S. 143(2): Assessment-Notice-Defective return-Date of filing of original return under section 139(1) was to be considered for purpose of computing period of limitation under sections 143(2) and 142(1), and not date on which defects actually came to be removed under section 139(9)-Notice is quashed. [S. 143(2), 139(1), 139(9)