Assessment under Section 144 read with 147 quashed for missing Section 143(2) notice, appeal allowed

The ITAT Delhi - AT quashed the assessment framed under section 144 read with section 147 due to the non-issuance of notice under section 143(2). The tribunal found the Revenue failed to rebut this crucial fact. Relying on precedent from the SC in ACIT v. Hotel Blue Moon, the assessment was held invalid. The assessee's appeal was allowed.

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The Appellate Tribunal (ITAT Delhi) in the appeal for AY 2012-13 against the CIT(A)/NFAC order under section 147 read with section 144 of the Income Tax Act, 1961, addressed the validity of the reassessment order dated 02.12.2019. The key issue was that the Assessing Officer did not issue a mandatory notice under section 143(2) before finalizing the reassessment under section 144 r.w.s. 147. This procedural lapse was undisputed by the Revenue. Relying on the Supreme Court decision in ACIT Vs. Hotel Blue Moon (2010) 321 ITR 362 (SC), the Tribunal held the reassessment order invalid and quashed it. Consequently, all other merits were rendered academic, and the appeal was allowed.

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