Section 143(2) notice is mandatory after a return in response to section 148; failure vitiates reassessment additions.

A return filed in response to notice under section 148 was held not to be a return under section 119(2)(b), as no condonation or relief application had been moved and the return was also beyond the six-year limit referred to in CBDT Circular No. 9/2015. Once the return was treated as a response to the section 148 notice, issuance of notice under section 143(2) became mandatory before any variation to the returned income. Because no such notice was issued, the reassessment was non-compliant with the statutory requirement, and the additions made under section 69A were deleted.

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Issues: Whether the return filed on 19.11.2019 was a return under section 119(2)(b) of the Income-tax Act, 1961 or a return in response to notice under section 148, and whether omission to issue notice under section 143(2) vitiated the reassessment and the additions made under section 69A.

Analysis: The return could not be treated as one filed under section 119(2)(b) because no application for condonation or for any exemption, deduction, refund or other relief had been moved before the Board, and the return was also beyond the six-year limit indicated in CBDT Circular No. 9/2015 dated 09.06.2015. The return was accepted as filed in response to notice under section 148, and once such a return was filed, issuance of notice under section 143(2) became mandatory before making a variation to the returned income. As no notice under section 143(2) had been issued, the reassessment suffered from non-compliance with a statutory requirement.

Conclusion: The return was treated as one filed in response to notice under section 148, and the absence of notice under section 143(2) rendered the additions unsustainable. The additions were deleted.

Final Conclusion: The appeal succeeded on the jurisdictional objection, resulting in deletion of the additions, while the remaining grounds were not adjudicated.

Ratio Decidendi: Where a return is filed in response to a notice under section 148, the Assessing Officer must issue notice under section 143(2) before varying the returned income; failure to do so vitiates the additions made in the reassessment.

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