Appeal allowed due to lack of notice under Section 143(2) - reassessment deemed void.

The Tribunal allowed the assessee's appeal, quashing the reassessment proceedings due to the non-issuance of the mandatory notice under Section 143(2) of the Income Tax Act, 1961. The remaining grounds of appeal were dismissed as infructuous, and the reassessment was deemed void ab initio. The order was pronounced on 09.08.2021.

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Issues Involved:
1. Admission of additional legal ground.
2. Validity of reassessment proceedings due to non-issuance of statutory notice under Section 143(2) of the Income Tax Act, 1961.

Detailed Analysis:

1. Admission of Additional Legal Ground:
The assessee raised an additional ground challenging the reassessment on the basis of non-issuance of a statutory notice under Section 143(2) of the Income Tax Act. The Tribunal considered precedents from the Hon'ble Apex Court and jurisdictional High Court, affirming that legal grounds can be admitted if they go to the root of the matter and all relevant materials are on record. The Tribunal cited judgments from the National Thermal Power Co. Ltd. vs. CIT, CIT vs. Eicher Motors Ltd., and DCIT vs. Turquoise Investment & Finance Ltd., establishing that the Tribunal can admit and consider new legal grounds.

2. Validity of Reassessment Proceedings Due to Non-Issuance of Statutory Notice under Section 143(2):
The Tribunal examined whether the issuance of notice under Section 143(2) is mandatory for reassessment proceedings. The Tribunal found that the Assessing Officer (AO) did not issue the required notice under Section 143(2), a fact uncontroverted by the Revenue. The Tribunal referenced multiple judicial precedents, including the Hon'ble Apex Court's judgment in CIT vs. Laxman Das Khandelwal, which mandates the issuance of such notice. The Tribunal emphasized that Section 292BB, which deems notice valid if the assessee participates in proceedings, does not apply to the complete absence of notice. The Tribunal concluded that the failure to issue the notice under Section 143(2) rendered the reassessment proceedings void ab initio. Consequently, the reassessment was quashed.

Conclusion:
The Tribunal allowed the assessee's appeal, quashing the reassessment proceedings due to the non-issuance of the mandatory notice under Section 143(2). The remaining grounds of appeal were dismissed as infructuous since the reassessment proceedings were invalidated. The order was pronounced on 09.08.2021.

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