Amar Chemicals Vs DCIT (ITAT Delhi)
When 143(2) Goes Missing, Reassessment Cannot Survive- Jurisdictional Defect Fatal – Mandatory Notice Ignored, Assessment Annulled – ITAT Delhi
Delhi ITAT quashed the reassessment proceedings on the ground of non-issuance of mandatory notice u/s 143(2).
Assessee, a partnership firm, had originally filed its return of income on 23.10.2019 declaring income of ₹2,41,560. Subsequently, a survey was conducted u/s 133A at its premises & based on information gathered, AO issued a notice u/s 148 on 30.03.2023.In response, Assessee, through letters dt 31.03.2023 & 27.02.2024, intimated that its original return may be treated as the return filed in compliance with the notice u/s 148. AO however proceeded to complete reassessment u/s 147 r.w.s. 144 at an income of ₹7,41,464 without issuing any notice u/s 143(2).
Assessee contended before Tribunal that once its earlier return was deemed to be a return in response to the notice u/s 148, it was incumbent upon AO to issue notice u/s 143(2) within the prescribed time.
Tribunal concurred that in a case where a return of income was filed and thereafter, notice u/s. 148 was issued directing assessee to file the return of income; Assessee, by way of a letter, can request that such earlier return of income be considered a return of income in response to notice u/s. 148, & such return of income is a valid return of income. This view has been fortified by the decision of the ITAT, Delhi in the case of R.K. Gupta vs. ITO (2008) 115 ITD 384 (ITAT-Delhi); wherein similarly Assessee wrote a letter to the AO stating that the return of income already filed may be deemed to be the return filed in compliance of the notice u/s 148.
