SH. BHUSHAN LAL SAWHNEY,NEW DELHI vs. DCIT, NEW DELHI

The present appeals have been filed by the assessee against the orders of the ld. CIT(A)-25, New Delhi dated 25.10.2016.

The assessee prayed for admission of additional ground on the issue of validity of notice u/s 143(2). Since, the additional grounds taken up by the assessee is purely in nature, the same have been admitted.

The relevant facts of case for adjudication are that,  Return of income for the AY 2012-13 was filed on 30.09.2012.  E-filing acknowledgment No. 506966441300912 & 440/Del/2017 2 Bhushan Lal Sawhney  Date of issue of notice u/s 143(2) as per the Assessment Order dated 02.03.2015 page no.1- 15.10.2013  Provision of section 143(2) reads as under: “Section 143......... (2) Where a return has been furnished under section 139, or in response to a notice under sub-section (1) of section 142, the Assessing Officer or the prescribed income-tax authority, as the case may be, if, considers it necessary or expedient to ensure that the assessee has not understated the income or has not computed excessive loss or has not under-paid the tax in any manner, shall serve on the assessee a notice requiring him, on a date to be specified therein, either to attend the office of the Assessing Officer or to produce, or cause to be produced before the Assessing Officer any evidence on which the assessee may rely in support of the return:

From the facts above, we find that the notice issued on 15.10.2013 against the return filed on 30.09.2012 is barred by limitation and hence assessment completed consequently cannot be held to be valid. We also hold that no penalty u/s 271(1)(c) is leviable on the additions made in an invalid assessment. & 440/Del/2017 3 Bhushan Lal Sawhney 5. As a result, the appeals of the assessee are allowed. Order Pronounced in the Open Court on 05/04/2021.