Commissioner of Income Tax vs SRF Transitional Holdings Ltd.

This appeal by the Revenue filed under Section 260-A of the Income Tax Act is directed against the order passed by the Income Tax Appellate

Tribunal, Chandigarh Bench (for short the 'Tribunal"") in respect of the assessment year 1995-1996.

Appellant has raised the following substantial question of law, namely:-

(1) Whether in the facts and circumstances of the case, the Hon'ble ITAT Chandigarh Bench was right in law in holding that for completion of re-

assessment proceedings u/s 147, notice u/s 143(2) of the Income Tax Act has to be issued within the period prescribed in sub-section (2) of

Section 143 (2)?

Hon'ble the Supreme Court in the decision reported in (2010) 321 ITR 0362 (Assistant Commissioner of Income Tax & Anr. v. Hotel

Blue Moon) has considered the issue and in paragraph 15 held:

However, if an assessment is to be completed under section 143(3) r/w section 158 BC, notice under Section 143 (2) should be issued within

one year from the date of filing of block return. Omission on the part of the assessing authority to issue notice under Section 143 (2) cannot be a

procedural irregularity and the same is not curable and therefore, the requirement of notice under Section 143(2) cannot be dispensed with

In view of the said judgment, this appeal is dismissed.