Notice u/s 143(2)

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Arun S. Patel (Querist)
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08 October 2011 What are the remedies in case the notice u/s 143(2) is received by assessee after six months from the end of financial year in which return was filed. [proviso to Section 143(2)(ii)]

Hari Wadhwa

Hari Wadhwa (Expert)
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08 October 2011 The proceedings conducted under these circumstances would be illegal as held by the Indore bench of ITAT in Servite Sisters Society vs ACIT 130 TTJ 96

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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08 October 2011 Notice is barred by limitation. Pl challenge the service of notice so as to invalidate the assessment proceedings.

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CA PRAVIN

CA PRAVIN (Expert)
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08 October 2011 Notice is barred by limitation, but it cannot be said as illegal. It is irregular.
It cannot invalidate the assessment proceedings.

Same question was asked by ICAI in Jun-2009 final exam. In suggested answers, the above answer was given.

Hari Wadhwa

Hari Wadhwa (Expert)
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08 October 2011 Below are the relevant extracts of the judgment given by Indore bench of ITAT, where the assessment was declared ILLEGAL ab initio: -

"Facts of the case are that the assessee filed return of income on 14th Oct., 2003. Notice under s. 143(2) was issued on 11th Oct., 2004 which was served on the assessee on 1st Nov., 2004. There is no dispute regarding the above dates. The learned counsel for the assessee during course of hearing argued that the assessee society is registered under MP Societies Registration Adhiniyam, 1973 and carrying out charitable activities in remotes areas of the country. The notice under s. 143(2) was served on the society on 1st Nov., 2004 and the assessee society vide letter dt. 20th Dec., 2004 had protested and intimated to the AO that the notice has been served beyond the limitation of 12 months from the end of the month in which the return of income was filed. Therefore, the proceeding initiated vide notice under s. 143(2) is invalid, illegal ab initio."

Full judgments may pls be refered at the following link: -

http://taxworry.com/receipt-of-scrutiny-notice-us-1432-after-last-date-is-bad-in-law/

Arun S. Patel

Arun S. Patel (Querist)
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10 October 2011 I would like to ask further question that, even if the Assessee contends that the notice is received after the due date mentioned u/s 143(2)(ii)is invalid, the AO still have the option to make the assessment u/s 148. Now what is the remedy?

sumit jain

sumit jain (Expert)
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10 October 2011 If he has "Reason to believe that income has escaped assessment" then he can serve notice u/s 148 and make assessment u/s 147 (even though the assessment u/s 143(3) or notice u/s 143(2) is void)