Section 143(2) notice delay rendered reassessment invalid and led to quashing of proceedings.

Failure to issue a notice under Section 143(2) of the Income-tax Act, 1961 within the statutory period was treated as a fatal defect in reassessment proceedings, even though the reassessment was based on transfer pricing information and a reference under Section 92CA. The subsequent notice was issued beyond the prescribed time, and that omission was undisputed. On that basis, the reassessment notice dated 15.02.2013 and all consequent proceedings were quashed in favour of the assessee.

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Issues: Whether the reassessment notice and all consequent proceedings were liable to be quashed for failure to issue notice under Section 143(2) of the Income-tax Act, 1961 within the prescribed time.

Analysis: The reassessment was founded on transfer pricing information and a reference under Section 92CA of the Income-tax Act, 1961, but the decisive defect was that no notice under Section 143(2) was issued within the statutory period. The subsequent issuance of notice beyond the prescribed limit was undisputed. The omission to serve the notice within time was treated as fatal to the reassessment proceedings.

Conclusion: The reassessment notice dated 15.02.2013 and all proceedings arising from it were quashed, in favour of the assessee.

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