Law:

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Section 143 of the Income-tax Act, 1961 - Assessment - Issue of notice - Assessment year 1994-95 and 1995-96 - Whether where return is filed by assessee in response to notice under section 148, before proceeding to decide controversy with regard to escaped assessment a notice under section 143(2) must be issued, as provisions contained in section 143(2) is mandatory - Held, yes FACTS For the assessment year 1994-95, the assessee filed original return on 29-3-1996 declaring certain income. During the course of assessment proceedings of the assessment year 1996-97, it came to light that the assessee had acquired gift of a huge amount in the name of his minor son from one 'A' through his NRE account. On the basis of that information the case was reopened under section 148 by issuing notice on 26-12-2000. In response to said notice, the assessee informed that he had already filed return of income on 29-3-1996 and, hence, notice under section 148 be withdrawn. Thereafter, the Assessing Officer issued notice under sections 143(2) and 142(1) informing the assessee that notice under section 148 was pending and had not been withdrawn as requested by him. Thereafter, the assessee filed return on 7-2-2002. The Assessing Officer completed the assessment under section 147 by making addition with regard to unexplained gift on the ground that the donor was not available on the given address nor was he produced before the Assessing Officer in spite of opportunity provided. The assessee filed an appeal before the Commissioner (Appeals) contending that since no notice was issued under section 143(2) after filing of return in response to notice under section 148, reassessment was not valid. The Commissioner (Appeals) rejected the contention holding that when the assessee had filed return in response to notice under section 148, non-issuance of notice under section 143(2) after filing return would not be fatal. The Tribunal, however, allowed the assessee's appeal holding that after filing of return in response to notice under section 148, a notice under section 143(2) should have been issued being mandatory in nature. On the revenue's appeal: HELD The provisions contained in…

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