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Issues involved:
The legal issue in this case revolves around the validity of a block assessment order under Section 158BC without the issuance of a notice under Section 143(2). Summary: Legal Issue - Validity of Block Assessment Order: The appeal was filed against the Commissioner's order for the block period 10-6-1993 to 20-7-2003, where the first appellate authority partially allowed the assessee's appeal. The cross-objection raised the issue of the assessment's validity u/s 143(2) without notice. The assessing officer did not issue a notice u/s 143(2) before completing the block assessment u/s 158BC(c) on 31-7-2002. The Tribunal held the assessment order dated 31-7-2002 as bad in law, following the judgment of the Bombay High Court. The Tribunal upheld that non-issuance of notice u/s 143(2) invalidates the assessment under Section 158BC. Arguments and Decisions: The assessee's counsel argued that the assessing officer's failure to issue a notice u/s 143(2) before the block assessment renders the assessment invalid. The Tribunal agreed with this argument, citing relevant judgments. The Tribunal dismissed the revenue's appeal and allowed the assessee's cross-objection, holding the order under Section 158BC as bad in law. The Tribunal did not delve into the revenue's grounds as the assessing officer's order was already canceled. Legal Precedents: The Tribunal referred to judgments by the Bombay High Court and the Delhi High Court to support the decision that non-issuance of notice u/s 143(2) affects the validity of the assessment under Section 158BC. The Tribunal also discussed the applicability of Section 292BB and its interpretation by the Special Bench of the Tribunal in a related case. Conclusion: The Tribunal concluded that the failure to issue a notice u/s 143(2) before the block assessment under Section 158BC renders the assessment invalid. The appeal by the revenue was dismissed, and the cross-objection by the assessee was allowed based on the legal issue raised.
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