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2023 (4) TMI 232 - AT - Income TaxValidity of reopening of assessment - non issue of mandatory notice u/s 143(2) - HELD THAT - As issuance of notice u/s 143(2) of the Act is mandatory for the AO to proceed with the assessment u/s 143(3) of the Act, even in cases pertaining to the reopening of the assessment u/s 147 of the Income-tax Act. We hold that the assessment order is bad in law for the reason that the assessing authority passed the order u/s 143(3) of the Act without issuing mandatory notice u/s 143(2) of the Act. Accordingly, the assessment order is, hereby, quashed. Decided in favour of assessee.
Issues involved:
The issues involved in the judgment are the validity of the assessment framed u/s 143(3) read with section 147 of the Income Tax Act, 1961 due to the absence of issuing a mandatory notice u/s 143(2) of the Act. Validity of Assessment: The Assessee contested the validity of the assessment framed u/s 143(3) read with section 147 of the Income Tax Act, 1961, citing the absence of a mandatory notice u/s 143(2) of the Act. The Assessee's counsel provided evidence that no notice u/s 143(2) was issued, emphasizing incomplete addresses on notices which were returned as un-served. The only notice received by the Assessee was u/s 142(1) to file the return of income. The counsel referred to legal precedents, including 'Hotel Blue moon (2010) 3 SCC 259,' and 'CIT Vs. Laxman Das Khandelwal' [2019] 108 taxmann.com 183(SC), highlighting the mandatory nature of the notice u/s 143(2) for assessment proceedings. The Tribunal held that the assessment order was invalid as it was passed without issuing the mandatory notice u/s 143(2), thereby quashing the assessment order. Conclusion: The Appellate Tribunal, ITAT Chandigarh, in the judgment dated 24.03.2023, allowed the appeal by the Assessee against the order of the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi. The Tribunal ruled in favor of the Assessee, declaring the assessment order invalid due to the assessing authority's failure to issue the mandatory notice u/s 143(2) of the Income Tax Act, 1961.
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