Notice issued u/s 143(2) after 6 months from end of financial year in which return is furnished is time barred

SMC Comtrade Ltd Vs ACIT (Delhi High Court)

Delhi High Court held that notice issued under section 143(2) of the Income Tax Act after the expiry of six months from the end of the financial year in which return is furnished is barred by limitation and hence unsustainable in law.

Facts- The petitioner/assessee had filed its original Return of Income (ROI) on 14.10.2016. In the ROI, the petitioner/assessee declared a loss amounting to Rs. 3,85,73,772/-. On 06.02.2017, the petitioner/assessee was served with a notice u/s. 139(9). This notice stated that the ROI filed by the petitioner/assessee was defective and this regard referred to section 139(9) of the Act. The defects were removed on 18.02.2017.

The petitioner/assessee was served with another notice dated 10.07.2017, wherein, it was pointed out that the ROI filed for AY 2016-17 dated 14.10.2016 contained defects. The petitioner/assessee, thus once again, removed the defects, albeit, on 20.07.2017.

ROI filed on 14.10.2016 was processed by the Assessing Officer (AO) after the defects were removed. An intimation to that effect was served on the petitioner u/s. 143(1) of the Act. It was only thereafter that the petitioner/assessee was served with the first notice u/s. 143(2) on 11.08.2018, and the second notice on 31.08.2018 u/s. 142(1) of the Act.

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