Invalid notice under section 143(2) defeats jurisdiction to complete assessment under section 143(3).

A valid notice under section 143(2) had to be issued and served within the prescribed period by a competent officer before assessment could be completed under section 143(3). On the facts stated, the notice dated 30.09.2010 was not shown to have been validly issued by an having jurisdiction over the assessee, and the later notice dated 15.11.2010 was time-barred. Because valid issuance and service were jurisdictional requirements, the defect was not a mere procedural irregularity. The assessment therefore could not be sustained on the basis of the invalid notice and was annulled in favour of the assessee.

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Issues: Whether the assessment was invalid for want of a valid notice under section 143(2) of the Income-tax Act, 1961 within the prescribed period, and whether the Assessing Officer could assume jurisdiction to complete the assessment under section 143(3) of the Income-tax Act, 1961.

Analysis: The notice under section 143(2) had to be issued and served within the prescribed time and by a competent officer. On the facts found, the notice dated 30.09.2010 was not shown to have been validly issued by an officer having jurisdiction over the assessee, and the later notice dated 15.11.2010 was beyond time. Since valid service and valid issuance are jurisdictional requirements, the assessment could not stand on an invalid notice. The defect went to the root of the matter and was not a mere procedural irregularity.

Conclusion: The notice under section 143(2) was invalid, the assumption of jurisdiction under section 143(3) failed, and the assessment was annulled in favour of the assessee.

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