Mandatory notice requirement under Section 143(2) is essential before assessment after a return filed in response to notice under Section 148; absence voids reassessment.

Where an assessee filed a return in response to a notice under Section 148 and the Assessing Officer completed assessment under Section 144B read with Section 147 without issuing a subsequent notice under Section 143(2), the assessments are ineffective. The article applies the principle that issuance of the statutory Section 143(2) notice is mandatory before framing assessment on a filed return; absence of that mandatory notice renders the reassessment void ab initio and leads to quashing of the assessment in favour of the assessee.

---

---

Issues: (i) Whether the assessment/reassessment framed under Section 144B read with Section 147 of the Income-tax Act, 1961 for AY 2016-17 is valid where no notice under Section 143(2) of the Income-tax Act, 1961 was issued after the assessee filed a return in response to notice under Section 148 of the Income-tax Act, 1961.

Analysis: The Tribunal examined the factual record showing that the assessee filed a return on 28.10.2021 in response to a notice issued under Section 148 of the Income-tax Act, 1961 and that the Assessing Officer completed assessment under Section 144B read with Section 147 of the Income-tax Act, 1961 without issuing any notice under Section 143(2) of the Income-tax Act, 1961. The Tribunal considered binding and persuasive authorities holding that once a return is filed pursuant to a notice under Section 148, issuance of notice under Section 143(2) is mandatory before framing an assessment; assessments/reassessments completed without issuing the mandatory notice under Section 143(2) have been held invalid. The Tribunal noted that the Assessing Officer acted upon the return filed by the assessee in computing income and that the Revenue could not show issuance of Section 143(2) notice. Applying the legal principle that framing an assessment without the mandatory Section 143(2) notice where a return has been filed renders the assessment ineffective, the Tribunal concluded that the reassessment was vitiated for want of the required notice.

Conclusion: The assessment/reassessment framed under Section 144B read with Section 147 of the Income-tax Act, 1961 for the assessment year 2016-17 is void ab initio for failure to issue the mandatory notice under Section 143(2) of the Income-tax Act, 1961 and is quashed; decision is in favour of the assessee.

---