Netherlands Operating Company B.V. RMZ Millenia Vs ACIT (ITAT Chennai)
ITAT Chennai held that failure to issue notice u/s. 143(2) of the Income Tax Act after issuing notice u/s. 147 and prior to finalizing the re-assessment vitiated the entire proceedings. Accordingly, order quashed.
Facts- The assessee company had filed its return of income (RoI) for AY 2010-11 on 19.09.2010 declaring total income of Rs.6,58,20,854/-. The AO issued notice u/s.148 of the Act on 31.03.2017 conveying his desire to re-open the assessment of the assessee and directed the assessee to file RoI.
AO proceeded with the assessment proceedings and passed the draft assessment order u/s.144C(1) of the Act on 29.12.2017; and since, assessee didn’t file any objection before the Dispute Resolution Panel, the AO completed the assessment u/s.144C(3)(b) of the Act on 28.02.2018 by computing the total income at Rs.32,18,84,460/- in place of returned income of Rs.6,58,20,850/-.
CIT(A) dismissed the legal issue. Being aggrieved, the present appeal is filed.
Conclusion- Held that no notice u/s.143(2) of the Act was issued by the AO after issuing notice u/s.147 of the Act, the action of the AO framing assessment order dated 28.02.2018 is vitiated and the impugned action of the AO is held to be wholly without jurisdiction and therefore, the assessee succeeds on the legal issue; and the assessment order dated 28.02.2018 is quashed.
