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2019 (10) TMI 720 - AT - Income TaxValidity of reassessment framed by the AO without issuing and service notice u/s 143(2) - HELD THAT - It is clear that the alleged notice dated 11.12.2017 was not issued and even not served on the assessee. The alleged proceedings interjected in between two other proceedings that too subsequent proceedings clearly reveals this fact. Accordingly, it becomes manifest and clear that the reassessment was completed without issuing the mandatory notice u/s 143(2) of the IT Act and consequently the assessment was framed without assuming the jurisdiction as conferred by section 143(2) We do not find any merit in the assessment so framed u/s 143(3) without issue of notice U/s 143(2) of the Act. The reassessment framed by the AO without issuing notice u/s 143(2) is bad in law and same is quashed. Since the reassessment is quashed for want of notice issued under section 143(2) of the IT Act, therefore, the other ground raised by the assessee becomes infructuous and not taken up for adjudication. - Appeal of the assessee is allowed.
Issues: Validity of reassessment without notice under section 143(2) of the IT Act
Issue 1: Validity of reassessment without notice under section 143(2) of the IT Act The appeal challenged the order confirming an addition made by the AO under section 69A without appreciating the facts of the case. The assessee contended that the reassessment was completed without issuing a notice under section 143(2) of the IT Act. The AO reopened the assessment based on information regarding cash deposits, but the assessee argued that no notice under section 143(2) was issued. The ld. CIT (A) did not separately address this issue, leading to the Tribunal's consideration. The AO accepted the filing of the return of income but allegedly issued a notice under section 143(2) after the proceedings, indicating an afterthought. The Tribunal cited a similar case where the absence of notice under section 143(2) rendered the assessment void ab initio. Considering these precedents, the Tribunal held that the reassessment without issuing the mandatory notice was invalid and quashed it. Outcome: The reassessment was quashed due to the absence of a notice under section 143(2) of the IT Act, rendering the other grounds raised by the assessee irrelevant. Consequently, the appeal of the assessee was allowed.
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