Return of Income beyond the time limit provided under section 142(1) – Whether it is necessary to issue notice u/s 143(2)?

 

Issue: Whether it is necessary to issue notice u/s 143(2) of the Act, when assessee has filed the Return of Income beyond the time limit provided by Ld. AO, in response to notice under section 142(1) of the Act.

Facts of the Case:
The notice u/s 142(1) of the Act has been issued on 19/12/2017 requiring assessee to file return of income on or before 18/01/2018. However, assessee filed return of income beyond the time limit specified in notice u/s 142(1) of the Act on 03/06/2019. Therefore, one key issue arises in the instant case i.e., Whether it is necessary for Ld. AO to issue notice u/s 143(2) of the Act to acquire the Jurisdiction even though return filed by assessee is belated?

Findings of the court
The time limit stated by the assessing officer, as per his own whim, or desire, in the notice u/s 142(1) of the Act, is not a LAXMAN REKHA, (that is, expiry date), on which the assessee should have filed the return of income, before the assessing officer. It is only administrative and individual decision of the AO, to allow the time limit to the assessee, to file the return of income, in response to the notice u/s 142(1) of the Act.

However, once the assessee has filed the Return of Income, in response to notice, u/s 142(1) of the Act, (although it is late), then it is mandatory for the assessing officer, in order to acquire the jurisdiction, to make the assessment on the assessee, to issue the notice u/s 143(2) of the Act. Without issue of notice u/s 143(2) of the Act, the assessing officer does not get jurisdiction to make the assessment on the assessee.

The return of income is considered by AO while passing of order as well as while assessing total income & While making addition and determining the assessed income. AO neither discarded the return of income nor treated it as invalid return during the entire assessment proceedings.

The return filed by assessee is belated return and the same is not discarded, as invalid, by AO, the AO is bound to issue a notice u/s 143(2) of the Act.

 

The copy of the order is as under:

1747888738-FfVFmh-1-TO