Reassessment proceedings invalid when statutory notice under section 143(2) never issued to assessee

ITAT Amritsar held that reassessment proceedings were invalid due to non-issuance of statutory notice under section 143(2). The assessee repeatedly sought inspection of records and copies of the notice, paying requisite fees, but the Assessing Officer failed to provide them. The Departmental Representative could not confirm whether the notice was issued and failed to produce assessment records. The tribunal distinguished this case from non-service of an issued notice, ruling that complete non-issuance constituted an incurable defect invalidating the assessment proceedings' foundation. The appeal was decided in favor of the assessee.

---

---

Issues Involved:
1. Condonation of delay in filing appeal.
2. Confirmation of addition made by AO on cash deposited in bank account.
3. Jurisdictional notice u/s 143(2) not issued by AO.

Summary:
Issue 1: The appeal was filed 47 days late due to medical problems in the family of the advocate representing the assessee. The delay was unintentional, and after considering the grounds in the condonation application, the delay was condoned, and the appeal was admitted for hearing on merits.

Issue 2: The appeal challenged the addition of Rs. 21,11,480 made by the AO on cash deposited in the bank account. The CIT(A) confirmed the addition without examining the merits of the case and without allowing cross-examination of the bank manager. The appellant also raised issues regarding denial of signatures and lack of investigation by the authorities.

Issue 3: The jurisdictional notice u/s 143(2) was not issued by the AO, which was raised as a legal ground before the Tribunal. The non-issuance of the statutory notice was considered an incurable defect, and the assessment was deemed void ab initio. The Tribunal allowed the appeal based on the jurisdictional issue, without delving into the merits of other grounds.

In conclusion, the Tribunal allowed the appeal based on the non-issuance of the statutory notice u/s 143(2), declaring the assessment void ab initio. The decision was made solely on jurisdictional grounds, without addressing the other issues raised in the appeal.

---