THE COMMISSIONER OF INCOME TAX v. M/S SOCIADADE DE FOMENTO

We have heard the Learned Counsel appearing for the Appellant in support of this appeal under section 260-A of the Income Tax Act,

The challenge is to the order dated 25th November, 2009 passed by the Income Tax Appellate Tribunal, Panaji. The Tribunal held that the block assessment order passed in the respondent assesse's case for the block period 1st April, 1990 to 13th September, 2000 is abinitio void. It was held that the requirement of section 143(2) of the said Act of 1961 was mandatory, which is applicable in the case of block assessment.

The learned Counsel appearing for the appellant submitted that the question of law is whether the requirement of section 143(2) of the said Act of 1961 will apply while concluding the block assessment.

A Division Bench of the Gauhati High Court in the case of Smt. Bandana Gogoi Vs. Commissioner of Income Tax reported in (2207) 289 ITR (GUJ) held that the provisions of section 143(2) of the said Act will be mandantorily applicable in the case of block assessment also. We find that the view taken by the Gauhati High Court has been approved by the Division Bench of this High Court in the case of CWT vs. J.M. Scindia (HUF) dated 5th February, 2008 in Wealth Tax Appeal No.1001 of 2007. In paragraph 8 of the said decision, the view of Gauhati High Court has been upheld.