Timely Section 143(2) notice is a jurisdictional requirement; delay can invalidate assessment proceedings and prevent Section 143(3) assessment.

A valid notice within the prescribed limitation period is treated as a jurisdictional requirement for completing an assessment under Section 143(3). For AY 2013-14, the return was filed on 28 September 2013, while the last date for issuing notice under Section 143(2) was 30 September 2014; the notice was recorded as issued on 15 October 2014. The notes therefore state that the assessment lacked legal foundation and was quashed as void ab initio, making separate consideration of the Section 14A disallowance unnecessary.

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Issues: Whether the assessment was liable to be quashed as void ab initio on account of notice under Section 143(2) of the Income-tax Act, 1961 having been issued beyond the prescribed limitation period.

Analysis: The return for AY 2013-14 was filed on 28.09.2013, and the statutory last date for issuance of notice under Section 143(2) was 30.09.2014. The assessment order itself recorded that the notice under Section 143(2) was issued only on 15.10.2014. Since service of a valid notice under Section 143(2) within the prescribed time is a jurisdictional requirement for framing an assessment under Section 143(3), the assessment proceedings lacked legal foundation. On that basis, the challenge to the disallowance under Section 14A did not require separate adjudication.

Conclusion: The assessment was quashed as void ab initio for want of a valid and timely notice under Section 143(2) of the Income-tax Act, 1961; the issue was decided in favour of the assessee.

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