Appeal allowed due to lack of valid notice under Section 143(2) - Assessment order quashed

The Tribunal allowed the appeal, quashing the assessment order due to lack of a valid notice under Section 143(2) by the jurisdictional Assessing Officer. The Tribunal found the notice issued by the Assessing Officer without jurisdiction to be non-existent in law, rendering the subsequent assessment order void. The Tribunal emphasized the mandatory nature of the notice requirement and cited case law supporting its decision. The appeal was allowed solely on jurisdictional grounds, and other issues raised by the assessee were not addressed.

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Issues Involved:
1. Jurisdiction of the Assessing Officer (AO) issuing the notice under Section 143(2) of the Income Tax Act.
2. Validity of the assessment order passed without a proper notice under Section 143(2) by the jurisdictional AO.
3. Violation of principles of natural justice by the CIT(A).

Issue-wise Detailed Analysis:

1. Jurisdiction of the Assessing Officer (AO) issuing the notice under Section 143(2) of the Income Tax Act:

The assessee argued that the ITO, Ward-4(3), Kolkata, who issued the notice under Section 143(2) on 12.08.2013, did not have jurisdiction over the assessee's case. The assessee had communicated this lack of jurisdiction to the ITO, Ward-4(3), Kolkata, on 04.09.2013, stating that the correct jurisdiction lay with ITO, Ward-5(3), Kolkata. The case was subsequently transferred to ITO, Ward-5(3), Kolkata, but no fresh notice under Section 143(2) was issued by the jurisdictional AO. The Tribunal held that the notice issued by ITO, Ward-4(3), Kolkata, was without jurisdiction and thus non-est in law, making the subsequent assessment order void.

2. Validity of the assessment order passed without a proper notice under Section 143(2) by the jurisdictional AO:

The Tribunal emphasized that the issuance of a notice under Section 143(2) by the jurisdictional AO is a mandatory requirement. The failure of ITO, Ward-5(3), Kolkata, to issue such a notice rendered the assessment order dated 14.03.2015 invalid. The Tribunal cited several case laws, including the Supreme Court's decision in CIT vs. Laxman Das Khandelwal, which held that non-issuance of a notice under Section 143(2) by the jurisdictional AO is a jurisdictional defect that cannot be cured under Section 292BB of the Act. Consequently, the assessment order was quashed.

3. Violation of principles of natural justice by the CIT(A):

The assessee contended that the CIT(A) wrongly stated that no one appeared on behalf of the assessee and that no written submissions were filed. The assessee provided evidence that written submissions were indeed filed and the case was heard. The Tribunal noted this procedural lapse and agreed that the CIT(A) did not consider the written submissions and other records. However, since the assessment order was quashed on jurisdictional grounds, the Tribunal did not further adjudicate on this issue.

Conclusion:

The Tribunal allowed the appeal filed by the assessee, quashing the assessment order passed under Section 143(3) due to the lack of a valid notice under Section 143(2) by the jurisdictional AO. The Tribunal did not address other grounds raised by the assessee as they became academic in light of the jurisdictional defect.

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