2012 (6) TMI 927 - AT - Income Tax

Reassessment Proceedings Quashed: Tribunal Rules Absence of Mandatory Notice u/s 143(2) Invalidates Process.

The Tribunal quashed the reassessment proceedings due to the absence of a notice issued under section 143(2) of the Income Tax Act, which is a mandatory ... - Issues involved:The legal issue raised is the absence of notice u/s 143(2) of the Income Tax Act during the reassessment proceedings u/s 147 r.w.s. 148. Comprehensive details:The appeal arose from the order of CIT(A)-XIV, Kolkata for A.Y 2005-06, framed by the Income Tax Officer u/s 144 r.w.s. 147 of the IT Act 1961. The issue stemmed from the failure to issue notice u/s 143(2) of the Act within 12 months from the date of filing the return of income in response to the notice u/s 148. The AO contended that no notice u/s 143(2) was required as no return was filed in response to the notice u/s 148. However, the assessee requested the AO to treat the original return as filed in compliance with the notice u/s 148. The AO proceeded with the assessment based on the revised computation filed by the assessee, condoning the delay in filing the return. The AO's actions were challenged, citing precedents emphasizing the mandatory nature of issuing notice u/s 143(2) for framing assessments. The Hon'ble Courts' decisions highlighted the importance of adhering to the statutory provisions regarding notice u/s 143(2) and the consequences of non-compliance.Judgment:The Tribunal held that the reassessment conducted without issuing notice u/s 143(2) was without jurisdiction and hence quashed. The decision was based on the legal requirement of issuing notice u/s 143(2) during reassessment proceedings, as established by legal precedents. As the jurisdictional issue was resolved, further consideration of other jurisdictional matters and the case's merits was deemed unnecessary. Consequently, the appeal of the assessee was allowed, and the assessment was set aside.