Professional Update

(Income Tax Case laws)

Civil Appeal 13871 of 2024 (Delhi High Court).

                        Ambience Private limited

vs

Assistant Commissioner of Income Tax & Anr.

Ratio.

The Delhi High Court held that Assessing officer or the prescribed authority under rule 12E of the rules can issue the notice u/s 143(2) of the income tax act 1961.

Facts.

The appellant has filed writ petition challenging a notice u/s 143(2) of the income tax act. The petitioner challenges the notice on the ground to be issued by the “non prescribed authority”.  The Ld. Counsel contended that the notice has to be issued by the jurisdiction AO vested with the power. No other AO can have the jurisdiction to issue the notice u/s 143(2)  

Issue.

Whether the notice u/s 143(2) can be issued by jurisdictional AO.

Held.

The Delhi High Court held that from the plain reading of the Section 143(2), it is apparent that notice u/s 143(2) can be issued by Assessing officer or any prescribed authority. The CBDT under rule 12E can prescribe the authority to issue the notice u/s 143(2) of the income tax act.

Once it is accepted that the AO has the jurisdiction to issue a notice under Section 143(2) of the Act – which is also the contention of the petitioner in this case – the AO cannot be faulted for proceeding to complete the assessment.

Therefore, the Impugned Notice u/s 148 is sustained.

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CA Manoj Garg

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