This article delves into the intricacies of the case ITA No. 508/DEL/2019, where Capt. Manohar Bhola of Faridabad challenged the validity of an assessment order passed under Section 143(3) for the assessment year 2013-14. The case was filed on 2019-01-24, and the final order was pronounced on 2023-03-31.
Case Number: ITA 508/DEL/2019
Appellant: Capt. Manohar Bhola, Faridabad
Respondent: ITO, Ward-1(2), Faridabad
Assessment Year: 2013-14
Case Filed on: 2019-01-24
Order Type: Final Tribunal Order
Date of Order: 2023-03-31
Pronounced on: 2023-03-31
Capt. Manohar Bhola filed his return of income for the assessment year 2013-14 on 31.07.2013, declaring an income of Rs.5,52,660. Subsequently, he filed a revised return on 10.11.2014, declaring the same income. The Assessing Officer (AO) issued a notice under Section 143(2) on 20.08.2015 and completed the assessment under Section 143(3) on 18.03.2016, adding an amount of Rs.35,12,500 under Section 68.
The main issues raised in this case were:
The appellant’s representative argued that the notice under Section 143(2) was issued beyond the period of limitation. According to the appellant, the AO had until 30.09.2014 to issue the notice, but it was issued on 28.08.2015, which was beyond the permissible period. The appellant also contended that the revised return of income filed on 10.11.2014 was invalid since it was filed after the issuance of the intimation under Section 143(1) on 23.01.2014.
The respondent, represented by the Senior Departmental Representative (DR), argued that the intimation under Section 143(1) cannot be treated as an assessment order. Therefore, the revised return filed by the appellant was valid. The respondent further contended that the notice under Section 143(2) was issued within six months from the end of the financial year in which the revised return was filed, making it within the period of limitation.
The Income Tax Appellate Tribunal (ITAT) bench, comprising Shri Saktijit Dey, Judicial Member, examined the facts and submissions presented by both parties.
The ITAT noted that the intimation under Section 143(1) is not considered an assessment order, as per the Supreme Court ruling in ACIT vs. Rajesh Jhaveri Stock Broker (P) Ltd. Therefore, the revised return filed on 10.11.2014 was valid.
The ITAT examined the provisions of Section 143(2) and concluded that the AO had issued the notice within the prescribed period. Since the revised return was filed in the financial year 2014-15, the AO had until six months from the end of that financial year to issue the notice. The notice issued on 28.08.2015 was within this period.
The ITAT dismissed the appellant’s grounds, holding that the notice under Section 143(2) was issued within the period of limitation and the revised return was valid. Consequently, the appeal filed by Capt. Manohar Bhola was dismissed.
The appeal filed by Capt. Manohar Bhola was dismissed, and the assessment order passed under Section 143(3) for the assessment year 2013-14 was upheld. This case highlights the importance of understanding the procedural aspects and timelines involved in income tax assessments.
ITA No. 508/DEL/2019: Capt. Manohar Bhola vs. ITO, Ward-1(2), Faridabad
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