Mandatory notice under section 143(2) in reassessment proceedings is jurisdictional; omission vitiates the reassessment.

In reassessment proceedings under the Income-tax Act, 1961, issuance of notice under section 143(2) is mandatory after initiation under sections 147/148. Failure to issue that notice is a jurisdictional defect, not a curable irregularity, because it goes to the root of the reassessment. On that basis, the reassessment was found unsustainable and the view in favour of the assessee was affirmed.

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Issues: Whether reassessment proceedings could be sustained when notice under section 143(2) of the Income-tax Act, 1961 was not issued after initiation of proceedings under sections 147/148 of the Income-tax Act, 1961.

Analysis: The notice under section 143(2) is a mandatory requirement in reassessment proceedings and its absence is not a mere curable irregularity. The defect goes to the root of the reassessment and renders the proceeding invalid. The Tribunal had rightly affirmed the order of the Commissioner of Income Tax (Appeals) and set aside the reassessment for want of such notice.

Conclusion: The reassessment was held unsustainable for non-issuance of notice under section 143(2) of the Income-tax Act, 1961, and the view taken in favour of the assessee was affirmed.

Ratio Decidendi: In reassessment proceedings, failure to issue notice under section 143(2) is a jurisdictional defect that vitiates the assessment and is not a curable irregularity.

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