Syeda Mariam Vs ITO (ITAT Bangalore)
ITAT Bangalore held that passing of assessment order without issuance of notice u/s. 143(2) of the Income Tax Act is a fatal one and it cannot also be cured u/s. 292B of the Income Tax Act.
Facts- Assessee filed her return of income on 28.07.2014. Thereafter a survey u/s. 133A was conducted at the company M/s. Intact Developers P. Ltd., in which the assessee is a Director and based on the survey it was found that the assessee had lent unsecured loans to the company and in support of the unsecured loans the assessee filed confirmation letters from the company. AO verified the details filed by the assessee and came to the conclusion that there is some escapement of income and issued a notice u/s. 148 of the Act on 06.02.2019, directing the assessee to file her return of income. The assessee had not responded. Therefore, a reminder notice has been issued and thereafter a show cause notice u/s. 144 r.w.s. 147 of the Act was issued on 03.05.2019. The assessee immediately filed her reply on 20.05.2019 and requested to treat the return filed u/s. 139(1) of the Act as the return filed in response to the notice issued u/s. 148 of the Act. AO made the assessment u/s. 144 r/w sec 147 of the Act and disallowed the Capital Gain claim u/s 54 B of the Act, interest credited to the capital gain account and added the same along with the returned income declared on 28.06.2014 as the income.
