ITAT quashes Scrutiny Assessment order without Proof of Service of Notice u/s 143 (2) [Read Order]

The Income Tax Appellate Tribunal (ITAT), Mumbai Bench presided by Mr. B.R. Baskaran (AM) has quashed the Scrutiny assessment order without proof of service of notice u/s 143 (2).

During the assessment proceedings of the appellant, Arun Kanhaiya Guptathe Assessing Officer made an addition of Rs. 3,49,600/- being an alleged on-money payment on the purchase of a flat. On appeal, the CIT(A) confirmed the addition, and hence the appellant filed an appeal before the ITAT.

The counsel for the appellant submitted that the appellant has not been served with the notice under section 143(2) of the Act. even after several queries to Assessing Officer, no proof for service of the notice under section 143(2) of the Act was provided.

The Tribunal observed that the Assessing Officer would get jurisdiction over the return of income filed by the assessee only upon service of notice under section 143(2) of the Act, thus the AO could not scrutinize the return of income without issuing notice u/s 143(2) of the Act in accordance with the law.

The single bench by relying on the decision of the Supreme Court in the case of ACIT Vs. Hotel Blue Moonhas held that “the impugned assessment order framed by the Assessing Officer is liable to be quashed for want of jurisdiction. In view of the above, I set aside the order passed by CIT(A) as well as Assessing Officer”.

Mr. Dhaval Shah and Ms. Naina Krishnakumar appeared on behalf of the appellant and the respondent respectively.

To Read the full text of the Order CLICK HERE

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