Validity of Notice u/s. 143(2)

This query is : Resolved

ASGAR MEHDI SAIYED (Querist)
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06 June 2011 Dear Experts,

I have a query which i am presenting in the form of an example:

Mr. A has filed his Return of Income for the A.Y. 2009-10 in the month of December 2009.
He has been served an Notice u/s. 143(2) in the month of May 2011 by the Income Tax Department.

My Question is:
1) Whether the above mentioned notice is good in law as the same has been issued after expiry of 6 months from the end of Financial Year in which the return has been filed.

2) Secondly whether it is possible for the AO to serve the notice u/s. 143(2) even after expiry of the said period if he has reasons to believe; that the assessee has understated his income. {Please refer provisions of clause (i) of Section 143(2)}

Will be obliged for your kind advice.

Regards,
Saiyed

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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06 June 2011 Q 1. In my opinion, the AO must had issued a notice earlier also but your client Mr A might have not informed about that.
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It is advisable to confirm with Mr A.
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If he has not received any notice prior to 30-09-2010, this notice is bad in law.

Q.2. In the given circumstances, as Notice U/s 143(2) is bad in law it will have no impact at all. However, looking to the quantum of income escaping the assessment ITO may recourse to Section 147 and can issue a notice U/s 148.

Section 143(2)(i) is not relevant now.

ASGAR MEHDI SAIYED

ASGAR MEHDI SAIYED (Querist)
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10 June 2011 Thanks for your kind reply.
Sir one more thing is that MR. A has not received any notice earlier. So, can the assertion of AO is justified that he had earlier sent a notice earlier.

Regards,

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