16 October 2009
Hello My Clinet have filed his Income Tax Returns for the AY 2008-09 on 30/09/2008. and on 14/06/2009 Assessing officer issued an Notice u/s 143(2). Without giving intimation u/s 143(1). My query is whether it is valid notice or not. Kindly suggest me. Thanking you Regards.
16 October 2009
Central Board of Direct Taxes in its Circular No. 549 dated October, 31, 1989 has instructed the Assessing Officers to issue intimation under Section 143(1) before issuance of notice under Section 143(2) of the Act .
however there was a supreme court judgement against this , i think gujurat state electricity board in late 2003 , sorry i dont remember the citation.
Although the boards circulars are binding on the AO , they are not binding on any authority above ITAT .
and the AO need not necessarily follow the boards circular if there is a court judgement against it .
Hence in my opinion the notice is valid in law if the procedure is properly followed u/s 282 of the IT Act .
17 October 2009
The decision referred by Mr Rajeev is CIT Vs. GUJARAT ELECTRICITY BOARD (2003) 260 ITR 84 (SC).It was a case under the then section 143(1)(a) wherein the court said once notice u/s 143(2) has been issued no intimation is possible.
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