Appeal allowed due to jurisdictional issue, assessment order voided for lack of notice. Statutory compliance emphasized.

The Tribunal allowed the appeal of the assessee based on the jurisdictional issue, rendering the assessment order null and void. The failure to issue the mandatory notice under section 143(2) before passing the assessment order under section 143(3) was deemed fatal to the validity of the assessment. The Tribunal emphasized the importance of adhering to statutory requirements and jurisdictional limits in conducting assessments under the Income Tax Act, 1961. The other grounds raised by the assessee were considered academic in light of the decision on the jurisdictional issue.

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Issues involved:
- Jurisdiction of the Assessing Officer to frame the assessment order based on the CBDT Instruction.
- Validity of the assessment order issued under section 143(3) of the Income Tax Act, 1961.

Detailed Analysis:

Issue 1: Jurisdiction of the Assessing Officer
The appellant raised a legal issue challenging the jurisdiction of the Assessing Officer (AO) to frame the assessment order. The appellant contended that the AO did not have the authority to issue the notice under section 143(2) of the Income Tax Act, 1961, as the returned income exceeded the monetary limit specified by the CBDT Instruction. The CBDT Instruction dated 31.01.2011 set new monetary limits for assessment based on the location and type of assessee. It was argued that since the appellant's income exceeded the specified limit for non-corporate assessee, the assessment should have been conducted by ACIT/DCIT, not the ITO. The ITO, realizing the error, transferred the case to DCIT, who issued an interim notice under section 142(1) but failed to issue the mandatory notice under section 143(2) before passing the assessment order under section 143(3). The Tribunal held that the AO lacked jurisdiction to issue the notice initially and the subsequent actions by DCIT were also invalid due to the failure to issue the required notice within the prescribed time limit. Consequently, the assessment order by DCIT was deemed null and void.

Issue 2: Validity of the Assessment Order
The Tribunal found that the failure to adhere to the statutory requirement of issuing notice under section 143(2) before passing the assessment order under section 143(3) rendered the assessment order invalid. The Tribunal emphasized that serving a notice under section 143(2) is a fundamental requirement for conducting a valid assessment under section 143(3) of the Act. As the DCIT assumed jurisdiction after the prescribed time limit for issuing the notice had lapsed, the assessment order was deemed to be without jurisdiction and null in the eyes of the law. Consequently, the Tribunal quashed the assessment order and allowed the appeal of the assessee on the legal issue raised regarding the jurisdiction of the Assessing Officer.

In conclusion, the Tribunal allowed the appeal of the assessee based on the jurisdictional issue, rendering the assessment order null and void. The other grounds raised by the assessee were deemed academic in light of the decision on the legal issue. The Tribunal's decision highlighted the importance of adhering to statutory requirements and jurisdictional limits in conducting assessments under the Income Tax Act, 1961.

This detailed analysis provides an in-depth understanding of the legal judgment, focusing on the issues raised, arguments presented, and the Tribunal's decision regarding the jurisdiction of the Assessing Officer and the validity of the assessment order.

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