Invalid Block Assessment Order Due to Lack of Notice Under Section 143(2)

The Tribunal held that the block assessment order under Section 158BC was invalid due to the assessing officer's failure to issue a notice under Section 143(2). Citing relevant judgments, the Tribunal dismissed the revenue's appeal and allowed the assessee's cross-objection, declaring the assessment order as bad in law. The non-issuance of the notice u/s 143(2) was deemed to invalidate the assessment under Section 158BC, following precedents set by the Bombay High Court and the Delhi High Court.

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Issues involved:
The legal issue in this case revolves around the validity of a block assessment order under Section 158BC without the issuance of a notice under Section 143(2).

Summary:

Legal Issue - Validity of Block Assessment Order:
The appeal was filed against the Commissioner's order for the block period 10-6-1993 to 20-7-2003, where the first appellate authority partially allowed the assessee's appeal. The cross-objection raised the issue of the assessment's validity u/s 143(2) without notice. The assessing officer did not issue a notice u/s 143(2) before completing the block assessment u/s 158BC(c) on 31-7-2002. The Tribunal held the assessment order dated 31-7-2002 as bad in law, following the judgment of the Bombay High Court. The Tribunal upheld that non-issuance of notice u/s 143(2) invalidates the assessment under Section 158BC.

Arguments and Decisions:
The assessee's counsel argued that the assessing officer's failure to issue a notice u/s 143(2) before the block assessment renders the assessment invalid. The Tribunal agreed with this argument, citing relevant judgments. The Tribunal dismissed the revenue's appeal and allowed the assessee's cross-objection, holding the order under Section 158BC as bad in law. The Tribunal did not delve into the revenue's grounds as the assessing officer's order was already canceled.

Legal Precedents:
The Tribunal referred to judgments by the Bombay High Court and the Delhi High Court to support the decision that non-issuance of notice u/s 143(2) affects the validity of the assessment under Section 158BC. The Tribunal also discussed the applicability of Section 292BB and its interpretation by the Special Bench of the Tribunal in a related case.

Conclusion:
The Tribunal concluded that the failure to issue a notice u/s 143(2) before the block assessment under Section 158BC renders the assessment invalid. The appeal by the revenue was dismissed, and the cross-objection by the assessee was allowed based on the legal issue raised.

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