No Notice required to be issued when No Return filed in response to Sec 148 Notice: Jammu & Kashmir HC [Read Order]

Notices - Notice - Taxscan

The division bench of the Jammu and Kashmir High Court has held that, notice under Section 143(2) of the Income Tax Act was not required to be issued even in the case when no return in response to Notice under Section 148 was filed.

The assessee M/s Broadway Shoe Company filed its return for the assessment year 2005-06 on 13.02.2008 declaring the net loss of Rs.6000/-. The return was filed by the assessee belatedly, therefore, the same could not be processed. Thereafter proceedings under Section 147 of the Act were initiated and a notice under Section 148 of the Income Tax Act 1961 was issued by which assessee was asked to file return of income tax within 30 days from the date of service of the notice. In response to the said notice, the assessee did not file return.

While allowing the appeal, the division bench comprising of Chief Justice Gita Mittal and Justice Alok Aradhe said that, “the return was filed by the assessee after the time prescribed for filing return under Sections 139(1) and 139(4) had expired. Therefore, the return filed by the assessee has to be treated as non-est. The proceedings under Section 147 of the Act were initiated on the ground that the return for the assessment year 2005-06 was the first ever return filed by the assessee and was filed on 13.02.2008”.

“The Notice under Section 143(2) is required to be given only when return is furnished. Furnishing of the return is a sine qua non for issuance of notice under Section 143(2) of the Act. If no return is furnished by the assessee, there can be no reason for issuance of notice under Section 143(2) of the Act. Similar view has been taken by a Division Bench of this Court in the case of Azziz Qazi & Brothers v. ITO, (1974) Tax LR 540 (J&K)”, the bench added.

Subscribe Taxscan Premium to view the Judgment
taxscan-loader