Invalid Notice u/s.143(2) renders Assessment Void

The ITAT upheld the CIT(A)'s decision that the notice u/s.143(2) was not validly served within the prescribed period, following the Supreme Court's ruling in ACIT vs. Hotel Blue Moon. Consequently, the assessment order was deemed illegal and void ab initio. Both the Revenue's appeal and the Assessee's cross-objection were dismissed, affirming the importance of timely notice for block assessments and the necessity of adhering to procedural requirements strictly.

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Issues:
Appeal by Revenue challenging validity of notice u/s.143(2) and assessment order. Cross-objection by Assessee supporting CIT(A)'s decision on notice validity.

Analysis:
1. The appeal by Revenue contested the acceptance of the assessee's claim regarding the notice u/s.143(2) not being validly served, despite documentary evidence and the assessee's submissions before the AO. The CIT(A) found the notice served beyond the time limit, rendering the assessment order illegal and void ab initio, citing the Hon'ble Supreme Court's ruling in ACIT vs. Hotel Blue Moon. The ITAT upheld the CIT(A)'s decision, emphasizing the necessity of notice u/s.143(2) within the prescribed period for block assessments, leading to the rejection of the Revenue's appeal.

2. The cross-objection by the Assessee echoed the CIT(A)'s stance on the notice's validity, supported by the Hon'ble Supreme Court's ruling in Hotel Blue Moon. The ITAT deemed this issue as already addressed in the Revenue's appeal, rendering the cross-objection moot. Consequently, the cross-objection was dismissed as infructuous.

3. The ITAT consolidated the appeal and cross-objection due to the common issue of the notice u/s.143(2) validity. The legal and factual findings of the CIT(A) were upheld, emphasizing the importance of timely notice for block assessments. The judgment highlighted the binding effect of the Hon'ble Supreme Court's ruling and the necessity of following procedural requirements strictly in such cases. Ultimately, both the Revenue's appeal and the Assessee's cross-objection were dismissed, affirming the CIT(A)'s decision on the notice's validity and the consequent assessment order's nullity.

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