18 [2019] 105 taxmann.com 118
(Pune) ITO
(Exemptions) vs. S. M. Batha Education Trust ITA No. 2908/Pun/2016 A.Y.: 2012-13 Date of order: 4th
April, 2019
Section 143 r.w.s.
148 – Failure to issue notice u/s. 143(2) of the Act after the assessee files
the return of income renders the re-assessment order illegal and invalid
FACTS
The AO issued a notice u/s. 148 of the Act dated 29th
September, 2014 to the assessee, a trust engaged in educational
activities. The assessee neither replied to the notice nor filed its return of
income. Thereafter,
the AO issued two separate notices u/s. 143(2) of the Act on 29th
April, 2015 and 1st July, 2015. Subsequently, the assessee filed the
return of income on 21st October, 2015.
The AO completed the assessment and passed a reassessment
order. Aggrieved, the assessee preferred an appeal to the CIT(A).
Revenue also preferred an appeal to the Tribunal. The
assessee filed cross-objections challenging the re-assessment proceedings to be
bad in law since no statutory notice u/s. 143(2) was issued by the AO after the
assessee filed the return of income. The Tribunal decided this jurisdictional
issue.
HELD
The Tribunal held that the AO is required to issue
statutory notice u/s. 143(2) of the Act after the assessee files the return of
income in response to notice issued u/s. 148 of the Act. In the absence of such
a statutory notice after return of income is filed by the assessee, the
re-assessment order made by the AO was held to be invalid and illegal.
The Tribunal dismissed the appeal filed by Revenue and
allowed this ground raised by the assessee in its cross-objections.
