Reassessment notice service is jurisdictional: absence of valid section 143(2) notice renders the reassessment invalid.

In reassessment proceedings under sections 147 and 148, valid issuance and service of notice under section 143(2) are mandatory and jurisdictional before the reassessment can be completed. Mere participation by the assessee after the section 148 notice does not waive this requirement, and the presumption under section 292BB cannot cure the complete absence of proper issuance and service. The record failed to show compliance with section 282 and Rule 127 regarding recognised modes of service, so the reassessment was invalid and the assessment was quashed.

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Issues: Whether reassessment was invalid for want of proper issuance and service of notice under section 143(2) of the Income-tax Act, 1961 after proceedings were initiated under sections 147 and 148.

Analysis: Notice and its valid service are fundamental to income-tax proceedings. In reassessment matters, compliance with section 143(2) is mandatory and jurisdictional before finalising the reassessment order. Mere participation by the assessee after notice under section 148 does not dispense with the statutory requirement. The record did not establish proper issuance and service of notice under section 143(2), and the presumption under section 292BB could not cure the absence of issuance and service. The statutory scheme under section 282 and Rule 127 of the Income-tax Rules, 1962 also requires due service through recognised modes, which was not shown on the record.

Conclusion: The reassessment was held invalid for failure to establish issuance and service of notice under section 143(2); the assessee succeeded and the assessment was quashed.

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