Reassessment notice under Section 143(2) not fatal where assessee had full notice, replied, and was heard.

A reassessment initiated under Sections 147 and 148 was challenged for absence of a separate notice under Section 143(2) and alleged prejudice. The Court noted that the assessee had repeated notice of the grounds on which the deduction under Section 115JB was questioned, filed objections and replies, and was given an opportunity of hearing before the assessment order. It held that the purpose of Section 143(2) is to secure a proper opportunity before an adverse order, and that full notice of the issue and participation in the proceedings meant the omission to expressly cite Section 143(2) did not vitiate the reassessment or cause prejudice.

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Issues: Whether the reassessment was invalid for want of a notice under Section 143(2) of the Income-tax Act, 1961, and whether the assessee suffered prejudice despite repeated notices and opportunities during the reassessment proceedings.

Analysis: The reassessment was initiated under Sections 147 and 148 of the Income-tax Act, 1961 and the assessee was repeatedly informed of the grounds on which the deduction claimed in computing book profit under Section 115JB was questioned. The record showed issuance of notices, filing of objections and replies, and an opportunity of hearing before the assessment order was passed. The purpose of Section 143(2) is to ensure a proper opportunity before an adverse order is made, and the Court held that where the assessee had full notice of the issue and responded to it, mere omission to expressly mention Section 143(2) in the notices did not vitiate the proceedings or cause prejudice.

Conclusion: The reassessment was not invalid for want of a separate notice under Section 143(2), and the challenge failed.

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