Nirman Realtors and Developers Ltd. vs. Circle-2(3)(1)

Parties Involved

Facts Summary

The assessee, Nirman Realtors and Developers Ltd., filed its return of income for the assessment year 2012-13 declaring a total income of Rs. 1,08,15,970/-. The case was selected for scrutiny assessment, and a notice under section 143(2) of the Income-tax Act, 1961, was issued on 22.09.2014. Due to administrative restructuring, the jurisdiction was transferred to another Assessing Officer, who issued a fresh notice under section 142(1) on 19.12.2014 and completed the assessment on 26.03.2015. The Assessing Officer disallowed a claim of loss amounting to Rs. 1,84,86,824/-. The assessee appealed before the Commissioner of Income-tax (Appeals), challenging the validity of the notice and the disallowance of the loss. The Commissioner of Income-tax (Appeals) rejected the objection regarding the notice but directed verification of the sales reversals.…

Legal Issues

• 1. Whether the assessment proceedings are invalid due to the absence of a fresh notice under section 143(2) by the transferee Assessing Officer.
• 2. Whether the disallowance of the claimed loss of Rs. 1,84,86,824/- is justified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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