Validity of reassessment proceedings without notice under section 143(2): belated return not non est, reassessment quashed.

Validity of reassessment focused on whether reassessment could be framed without issuing a notice under section 143(2) and whether a belated return can be treated as non est. Tribunal reasoned that a belated return filed before completion of assessment cannot be treated as non est, making the assessing officer's framing of assessment without issuing the statutory notice improper. Consequently reassessment conducted without issuing the requisite notice was held to be without jurisdiction and was quashed, with reliance placed on relevant High Court precedents.

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Issues: Whether a reassessment framed under Sections 147/148 read with Section 144/144B is without jurisdiction and liable to be quashed where the assessee filed a belated return in response to a notice under Section 148 and no notice under Section 143(2) was issued prior to framing the reassessment.

Analysis: The Tribunal examined the statutory requirement for assuming jurisdiction in reassessment proceedings where a return is filed belatedly in response to a notice under Section 148. The record shows a notice under Section 148 was issued with a time limit to file the return, the assessee filed the return after that time but before completion of assessment, and no notice under Section 143(2) was issued prior to framing the reassessment. The Assessing Officer treated the belated return as non-est and proceeded under Section 144; however the tribunal relied on binding authorities and statutory interpretation establishing that issuance of notice under Section 143(2) is necessary to validly assume jurisdiction where a return is filed pursuant to Section 148 and that failure to issue such notice renders the reassessment order without jurisdiction.

Conclusion: The reassessment framed without issuing notice under Section 143(2) after a belated return filed pursuant to Section 148 is without jurisdiction and is quashed; appeal allowed in favour of the assessee.

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