CIT Vs Nagendra Prasad (Patna High Court)
The Patna High Court dismissed the Revenue’s appeal against the Tribunal’s order which had set aside an assessment made under Sections 143(3) and 147 of the Income-tax Act, 1961. The assessee had earlier approached the High Court relying on the Supreme Court’s decision in Assistant Commissioner of Income-Tax v. Hotel Blue Moon, but the writ petition was dismissed with liberty to pursue the statutory remedy. The Tribunal, relying on Hotel Blue Moon, held that the reassessment proceedings were liable to be struck down since the assessee had filed a return in response to the notice issued under Section 148, though belatedly, and no notice under Section 143(2) had been issued thereafter. The High Court identified the sole question of law as whether a notice under Section 143(2) was required. It noted that the Assessing Officer had issued a notice under Section 148 on 14.07.2008 requiring the assessee to file a return within thirty days, but the return was filed on 31.03.2009, around eight and a half months later. Referring to its earlier decision in Chand Bihari Agrawal v. Commissioner of Income Tax, Central, Patna on identical facts, and holding that Hotel Blue Moon governed the issue, the Court answered the question of law in favour of the assessee and against the Revenue. Accordingly, the miscellaneous appeal was dismissed.
