Assessee's Appeal Allowed for Non-Service of Notice: Emphasis on Due Process

The ITAT allowed the appeal of the assessee for statistical purposes, emphasizing the importance of addressing the jurisdictional issue of non-service of notice u/s 143(2) in accordance with the law. The judgment highlighted the significance of due process and the right of the assessee to challenge the validity of assessment proceedings based on procedural irregularities.

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Issues:
1. Jurisdiction of AO for initiating assessment proceedings without serving notice u/s 143(2) of the Income-tax Act.

Analysis:
The appeal was filed by the assessee against the order of the ld. CIT(A), Meerut. The grounds raised in the appeal primarily revolved around the jurisdiction of the Assessing Officer (AO) for commencing assessment proceedings without serving the notice u/s 143(2) of the Income Tax Act. The assessee contended that the AO had proceeded with the assessment without serving the requisite notice, rendering the assessment invalid. Additionally, the CIT(A) was criticized for not considering this issue and for not admitting an additional ground of appeal related to the non-service of notice u/s 143(2).

During the proceedings, the counsel for the assessee highlighted that the issue of non-service of notice u/s 143(2) was raised before the CIT(A) through an additional ground, which was not admitted or adjudicated upon by the CIT(A). The Departmental Representative (DR) supported the CIT(A)'s order.

The ITAT, after considering the submissions of both parties and reviewing the record, observed that the CIT(A) had not provided findings on the issue of non-service of notice u/s 143(2) raised by the assessee. The ITAT referred to the CIT(A)'s order, which acknowledged the non-service of notice but deemed the issue as not tenable since it was raised during the appeal proceedings for the first time. The ITAT held that legal issues can be raised at any stage and directed the CIT(A) to adjudicate on this issue after providing a fair opportunity for the assessee to be heard.

Consequently, the ITAT allowed the appeal of the assessee for statistical purposes, emphasizing the importance of addressing the jurisdictional issue of non-service of notice u/s 143(2) in accordance with the law. The judgment highlighted the significance of due process and the right of the assessee to challenge the validity of assessment proceedings based on procedural irregularities.

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