Issuance of S. 143(2) Notice Mandatory for S. 153A Proceedings: ITAT [Read Order]

The Hyderabad bench of the Income Tax Appellate Tribunal (ITAT) has held that the issue of section 143(2) of the Income Tax Act, 1961 is mandatory for initiating the proceedings under section 153A.

The Revenue approached the Tribunal challenging the order of the Commissioner of Income Tax (Appeals) wherein it was held that the Assessing Officer has erred in law and on facts in quashing the impugned assessment u/s.143(3) of the Act for want of a valid Section 143(2) notice while completing the assessment proceedings against the assessee.

The CIT-DR vehemently reiterated before the Tribunal that the Revenue’s foregoing pleadings that the issuance of Section 143(2) notice is nowhere mandatory in Section 153A proceedings initiated in furtherance to a search in light of the various case laws.

The Tribunal bench comprising Shri A.Mohan Alankamony, Accountant Member and Shri S.S.Godara, Judicial Member held that “We find no merit in the Revenue’s instant grievance since it has come on record that this is AY.2010-11 before us where the search itself was conducted on 11-03-2010. This is the year of search in other words not covered under the specified period of six assessment years u/s.153(1)(a) of the Act.”

Upholding the first appellate order, the Tribunal held that “Coupled with this, the hon’ble apex court’s decision in CIT Vs. Laxman Das Khandelwal [2019] 108 taxmann.com 183 (SC) holds that issuance of a valid 143(2) notice is very much a condition precedent for framing Section 143(3) assessment in the year of search. We thus find no infirmity in the Ld.CIT(A)’s order under challenge quashing the impugned assessment.”

To Read the full text of the Order CLICK HERE

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