Time Barred Notice cannot be objected after Completion of Assessment
There are various time limits that are imposed on the Assessing Officers for issuing the Notice of Income Tax under various sections of the Income Tax Act, 1961. For example, Section 149(1) specifies the time limit for notice to be issued u/s 148 for Income Escaping assessment or Section 143(2) for the Scrutiny Notices, etc.
All these time limits need to be followed strictly by the Income Tax Authority while issuing the notices or else the notice will be treated as a Time-Barred.
Time Barred Notices are not valid as per law. One can straight forward annul the notice by not responding to the notice or objecting the one.
What shall be the effect of answering a notice that was time barred? Section 292BB comes into picture. Section 292BB reads as under:
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.
Analysis:
The Section 292BB specifies that the notice is valid in case the notice is not served on time as per the provisions of the Act, given that an assessee has appeared in any proceeding or co-operated in any inquiry relating to an assessment or reassessment.
The above section will not apply if the objection is raised before completion of Assessment.
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