| Court: | Madras High Court |
| Head Notes: | B.Kubendran Vs DCIT,Chennai The single bench of Madras high court Justice Dr Anita Sumanth in this case was considering the question of irregularity in the search assessment on account of non issuance of notice u/s 143(2) of the Income-tax Act,1961 prior to completion of assessment u/s 153C of the Act. The Ld Single bench distinguished hotel blue moon judgement which was in the context of the erstwhile Section 158BC of the Act where the language of the section specifically referred to the notice u/s 143(2) of the Act, the Court primarily relied on the delhi High Court judgement in the case of Ashok Chaddha Vs ITO ((2011) 337 ITR 399 (Delhi) by holding that the purpose of notice u/s 143(2) was only to put the assessee to notice and once that was done by issuing notice u/s 153A with detailed questionnaire by issuing notice u/s 142(1), that purpose stood satisfied and non issuance of notice u/s 143(2) was not fatal to the completion of the assessment. This judgement brings out the finer distinction regarding the language used in the several sections as well as the purpose of issuance of notice u/s 143(2) and decisions in this regard. Ramesh Patodia |
| Law: | Income-Tax Act |
| Section(s): | Section 143(2), Section 153A/153C , Section 158BC of Income-tax Act,1961 |
| Counsel(s): | Counsels |
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| Uploaded By | CA Ramesh Patodia |
| Date of upload: | April 11, 2021 |
With respect to the Honble High Court, I am of the opinion that, though the provisions of section 153A/153C of the Act are silent as to the applicability of the specific provisions of section 143 of the Act (as was u/s 158BC), but, since the provisions of section 153A provides that “.. and the provisions of this Act shall, so far as may be, apply accordingly as if such return return were a return required to be furnished under section 139″(there was no such narration in section 158BC) and provisions of section 153C makes the provisions of section 153A applicable, the applicability of the provisions of section 143 has not not been excluded(prohibited). Consequently, in my respectful view, when the return filed u/s 153A/ 153C is a return furnished u/s 139 and the provisions of this Act have, so far as may be, made applicable, then to say that provisions of section 143 are not applicable seems to be incorrect. The view is with respect to the Hon’ble High Court and on my understanding of the provisions of the Law.
Sir, you are absolutely correct that the provision of section 143(2) is mandatory in completing the assessment as mentioned in the section 153 A/153 C as the notice under section 143(2) is jurisdictional notice. The case of Hotel Blue Moon as decided by the Honorable Supreme Court still holds good. And I am fighting two cases on that basis. Thanks.