NOTICE MUST IF BLOCK I-T RETURNS REJECTED

The supreme court has ruled that it is mandatory for the Income Tax Department to issue notice within the prescribed time limit of one year where the assessing officer in repudiation of the block return filed by the assessee proceeds for an inquiry. If an assessment is to be completed under section
143(3) read with section 158-BC (Income Tax Act), notice under section 143 (2) should be issued within one year from the date of filing of block return. Omission on the part of the assessing authority to issue notice under section 143(2) cannot be a procedural irregularity and the same is not curable and, therefore, the requirement of notice under section 143(2) cannot be dispensed with.