Reassessment quashed for lack of notice under IT Act section 143(2), leading to successful appeal.

The reassessment was quashed due to the absence of a notice under section 143(2) of the IT Act, rendering the other grounds raised by the assessee irrelevant. Consequently, the appeal of the assessee was allowed.

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Issues: Validity of reassessment without notice under section 143(2) of the IT Act

Issue 1: Validity of reassessment without notice under section 143(2) of the IT Act
The appeal challenged the order confirming an addition made by the AO under section 69A without appreciating the facts of the case. The assessee contended that the reassessment was completed without issuing a notice under section 143(2) of the IT Act. The AO reopened the assessment based on information regarding cash deposits, but the assessee argued that no notice under section 143(2) was issued. The ld. CIT (A) did not separately address this issue, leading to the Tribunal's consideration. The AO accepted the filing of the return of income but allegedly issued a notice under section 143(2) after the proceedings, indicating an afterthought. The Tribunal cited a similar case where the absence of notice under section 143(2) rendered the assessment void ab initio. Considering these precedents, the Tribunal held that the reassessment without issuing the mandatory notice was invalid and quashed it.

Outcome:
The reassessment was quashed due to the absence of a notice under section 143(2) of the IT Act, rendering the other grounds raised by the assessee irrelevant. Consequently, the appeal of the assessee was allowed.

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