Section 143(2) and 281B
NEERAJ GUPTA
(Querist) 20 November 2010
This query is : Resolved
A notice u/s 143(2) was not received by the Assessee in time. when the 2nd notice sent by the department after time was received by the assessee and the assessee lodge the objection with the Assessing officer. The Assesssing officer invoke sec 281B and freeze the account of the assessee. now whether the assessing officer can invoke sec 281B as it relates to proceedings of Search and if yes than can we file the writ to High Court for stay of demand as the proceedings are invalid because of not comply with the provisions of section 143(2). please advice.
is there any circular of CBDT that if the proceedings are invalid than that should be dropped.
A V Vishal
(Expert) 20 November 2010
Please clarify what you mean by "was not received by the Assessee in time". Is it posta delay or the assessee's absence for which the notice could not be served?
However, from plain reading of your query it looks the action of the A O is bad in law and you can approach the CIT to squash the notice and defreeze your account.
Surrender K Singal
(Expert) 20 November 2010
What happened between 143(2) and 281B or has the AO passed some Orders before invoking 281B to have a cause to do so ?
A V Vishal
(Expert) 21 November 2010
what happens between the date when the notice under 143 is served and action under 281 is initiated is immaterial since there is no justification of action taken by the deptt since the entire proceedings are vitiated.
NEERAJ GUPTA
(Querist) 24 November 2010
Subramanian ji Please expand your answer as you write 'yes' only as i have three four questions, so for which you have written yes please clarify
