Block Assessment Order Invalidated for Lack of Mandatory Notice; Revenue's Appeal Dismissed as Moot.

The tribunal declared the block assessment order null and void due to the non-issuance of a mandatory notice under section 143(2). The assessee's appeal was allowed, as the absence of this notice invalidated the assessment under section 158BC, in line with a precedent from the Gauhati HC. Consequently, the Revenue's appeal was dismissed as infructuous, given the quashing of the assessment order by the AO.

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Issues:
1. Validity of block assessment order due to non-issuance of notice under section 143(2).

Detailed Analysis:
Issue 1: Validity of block assessment order due to non-issuance of notice under section 143(2)
The appeal involved cross-appeals by the assessee and the Revenue against the order of the CIT(A) related to the block period ending on a specific date. The assessee contended that the block assessment order should be declared null and void due to the mandatory requirement of issuing notice under section 143(2) not being complied with, even though the return was filed in compliance with notice under section 158 BC. The Revenue conceded during the hearing that there was no material on record to show that any notice was issued to the assessee under section 143(2). The assessee relied on a decision of the Gauhati High Court to support their argument that issuance and service of notice under section 143(2) was mandatory for passing a block assessment order under section 158BC. The AO justified the validity of the assessment order without mentioning the issuance of notice under section 143(2). The tribunal held that in the absence of such notice, the block assessment order cannot be considered valid, citing the decision of the Gauhati High Court. Therefore, the block assessment made under section 158-BC was declared null and void, leading to the allowance of the assessee's appeal.

The Revenue's appeal was dismissed as the assessment order passed by the AO under section 158BC was quashed, rendering the Revenue's appeal infructuous. Consequently, the Revenue's appeal was dismissed.

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