Mandatory notice under section 143(2) is essential; assessment fails when valid service is not shown on record.

An assessment is unsustainable where the record does not show valid issuance or service of the mandatory notice under section 143(2) of the Income-tax Act, 1961. The assessee raised this jurisdictional defect during assessment and before the first appellate authority, but it was not addressed. On the material available, the absence of valid service of the statutory notice meant the assessment could not be sustained, and the assessment was set aside in favour of the assessee.

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Issues: Whether the assessment was liable to be set aside for want of valid service of the mandatory notice under section 143(2) of the Income-tax Act, 1961.

Analysis: The assessment records and order sheet did not show issuance or service of notice under section 143(2). The assessee had raised this defect during the assessment proceedings and before the first appellate authority, but the objection was not addressed. In the absence of valid service of the mandatory notice, the assessment could not be sustained.

Conclusion: The assessment was set aside for non-service of the mandatory notice under section 143(2) of the Income-tax Act, 1961, and the issue was decided in favour of the assessee.

Ratio Decidendi: An assessment made without valid service of the mandatory notice under section 143(2) is unsustainable in law.

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