[Opinion] Reassessment Without Notice u/s 143(2) when Assessee Treats Original ITR as Response to Notice u/s 148

CA Mukesh Kohli – [2023] 152 taxmann.com 203 (Article)

Introduction

We professionals see on number of occasions that reassessments are made u/s 143(3) r.w.s 147 without issuing notice u/s 143(2) where the assessee informed A.O. that original ITR be treated as ITR filed in response to notice issued u/s 148.

Now a question arise whether these assessments are valid assessments let us analyse this through the provisions of Income Tax Act and various case laws on this subject.

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 pres-cribed 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:

Provided that no notice under this sub-section shall be served on the assessee after the expiry of [three] months from the end of the financial year in which the return is furnished.]

Section 292BB

Where an assessee has appeared in any proceeding or co-operated in any inquiry relating to an assessment or reassessment, it shall be deemed that any notice under any provision of this Act, which is required to be served upon him, has been duly served upon him in time in accordance with the provisions of this Act and such assessee shall be precluded from taking any objection in any proceeding or inquiry under this Act that the notice was:

(a) not served upon him; or

(b) not served upon him in time; or

(c) served upon him in an improper manner

Provided that nothing contained in this section shall apply where the assessee has raised such objection before the completion of such assessment or reassessment.]

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