Invalid block assessment quashed for lack of statutory notice under section 143(2).

The Tribunal allowed the appeal, setting aside the order of the Commissioner of Income Tax (Appeals), due to the invalidity of the block assessment as no statutory notice under section 143(2) was issued within the prescribed period, rendering the assessment proceedings null and void. The Tribunal relied on legal precedents requiring such notice for assessments under Chapter XIV-B, ultimately quashing the assessment.

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Issues involved: Appeal against order of CIT(A) on multiple grounds including confirmation of additions, legal issues, and validity of assessment proceedings.

Confirmation of additions: Grounds related to confirmation of various additions including commission earned, undisclosed income, share application money, negative cash balance, telescoping, surcharge, and interest under s. 158BFA.

Validity of assessment proceedings: Assessee contended that assessment proceedings should be quashed due to non-issuance of statutory notice u/s 143(2) within the allowable period.

Legal issue of notice u/s 143(2): Assessee argued that absence of statutory notice under s. 143(2) rendered assessment proceedings null and void.

Judgment details: The Tribunal considered the argument that the assessment proceedings should be quashed due to the non-issuance of a statutory notice under s. 143(2) within the allowable period. The Tribunal referred to various decisions supporting the requirement of such notice for assessment under Chapter XIV-B. The Revenue admitted that no notice under s. 143(2) was issued or served upon the assessee within the prescribed period. Relying on legal precedents, the Tribunal held that the block assessment framed by the AO was invalid and quashed it. Consequently, the appeal filed by the assessee was allowed, setting aside the order of CIT(A).

Separate Judgment: No separate judgment was delivered by the judges in this case.

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