2022 (12) TMI 1514 - HC - Income Tax

Mandation to issue notice u/s 143(2) - whether the notice required to be issued under Section 143(2) was issued? - HELD THAT - Tribunal has referred to a remand report submitted by the Assessing Officer wherein the Department could not controvert the contention made by the assessee that no notice under Section 143(2) of the Act was issued by the Deputy Commissioner of Income Tax, Circle-13(1), Kolkata who completed the assessment. Tribunal has also noted the relevant decisions and rightly held that the assessment order is bad in law for the reason that the Assessing Officer passed the order u/s 143(2) of the Act without issuing any notice 143(2). We find that there is no substantial question of law arising for consideration in this appeal.

Summary

Issues Involved:
The appeal filed by the revenue u/s 260A of the Income Tax Act against the order of the Income Tax Appellate Tribunal for the assessment year 2012-13.

Issue 1:
The substantial question of law regarding the validity of the assessment order and the requirement of issuing a notice u/s 143(2) of the Income Tax Act.

The Court considered whether the notice u/r 143(2) was issued as required. The Tribunal found that the Assessing Officer completed the assessment without issuing the necessary notice. The Tribunal concluded that the assessment order was flawed in law due to the absence of the required notice. The Court determined that no substantial question of law arose in this appeal.

Issue 2:
The substantial question of law regarding the necessity of issuing a notice u/s 143(2) for an assessment order u/s 143(3) of the Income Tax Act.

The Tribunal decided that the authority passing the assessment order u/s 143(3) should have issued a notice u/s 143(2), although this requirement was not supported by the provisions of the Income Tax Act. The Court found no merit in this argument and dismissed the appeal.

The appeal [ITAT/221/2022] was dismissed, and the connected application [GA/2/2022] was closed accordingly.