Reassessment Proceedings Without Issuance of Notice u/s 143(2) is Bad in Law: ITAT quashes Assessment Order [Read Order]

The Bangalore bench of the Income Tax Appellate Tribunal (ITAT )has held that reassessment proceedings without the issuance of notice under section 143(2) of the Income Tax Act, 1961 is bad in law.

The Rajiv Gandhi University of Health, the appellate assessee challenged the CIT(A)’s passed under section 250 of the Income-tax Act, 1961 (the Income Tax Act, 1961). The relevant assessment year is 2013-2014. that the assessee has raised grounds stating that the assessment completed is not valid since the mandatory notice under section 143(2) of the Income Tax Act, 1961 has not been duly served on the assessee.

The prerequisite/condition for assessment to be valid being service of the mandatory notice under section 143(2) of the Income Tax Act, 1961 by the Jurisdictional Assessing Officer having not been complied with makes the impugned assessment order bad in law and the CIT(A), NFAC, Delhi should have set aside the assessment order on this ground alone.

The Registrar of the assessee society had filed an affidavit stating therein that the mandatory notice under section 143(2) of the Income Tax Act, 1961 has never been served on the assessee and this fact was brought to the notice of the Assessing Officer during the assessment proceedings vide assessee’s letter dated 15.03.2016.  Further submitted that since there is no service of notice under section 143(2) of the Income Tax Act, 1961, the impugned assessment order passed has to be quashed.

A two-member bench comprising Shri George George K, JM & Shri Laxmi Prasad Sahu, AM   observed that there was no noting for the issuance of notice under section 143(2) of the Income Tax Act, 1961. The ITAT accepted the assessee’s contention that there is no service of mandatory notice under section 143(2) of the Income Tax Act, 1961, and therefore, the assessment order is to be set aside on this ground alone.

While allowing the appeal, the Tribunal set aside the assessment order, since there is no valid service of mandatory notice under section 143(2) of the Income Tax Act, 1961.

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