Assessment proceedings quashed due to invalid notice, assessee's appeal allowed, Revenue's appeal dismissed.

The Tribunal quashed the assessment proceedings under section 143(3) read with section 147 due to the absence of a valid notice under section 143(2). The appeal by the assessee was allowed, and the appeal by the Revenue was dismissed.

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Issues Involved:
1. Validity of Notice under Section 143(2) of the Income Tax Act.
2. Requirement of Issuance of Notice under Section 143(2) for Reassessment Proceedings.
3. Impact of Non-compliance with Section 143(2) on the Assessment Proceedings.

Summary:

Validity of Notice under Section 143(2) of the Income Tax Act:
The assessee challenged the reassessment order on the grounds that no valid notice under section 143(2) of the Income Tax Act was issued. The first notice dated 20/02/2011 was issued before the assessee filed its return on 31/03/2011, making it non-est in law. The second notice dated 17/10/2011 was issued beyond the prescribed time limit under section 143(2), rendering it invalid.

Requirement of Issuance of Notice under Section 143(2) for Reassessment Proceedings:
The Tribunal analyzed the provisions of section 143(2) and concluded that a valid notice under this section is mandatory for reassessment proceedings. The Tribunal referred to the decision of the Hon'ble Supreme Court in ACIT vs Hotel Blue Moon, which emphasized the necessity of issuing a valid notice under section 143(2) for reassessment.

Impact of Non-compliance with Section 143(2) on the Assessment Proceedings:
The Tribunal found that the return filed by the assessee on 31/03/2011 was within the time allowed under section 139(4) of the Act. Thus, the requirement to issue a notice under section 143(2) was not dispensed with. The Tribunal rejected the Departmental Representative's argument that the return was invalid due to late filing. Consequently, the entire assessment proceedings were rendered null and void due to the failure to issue a valid notice under section 143(2).

Conclusion:
The Tribunal quashed the assessment proceedings under section 143(3) read with section 147 due to the absence of a valid notice under section 143(2). The appeal by the assessee was allowed, and the appeal by the Revenue was dismissed. The other issues raised in the cross-appeal were deemed academic and infructuous.

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