Jurisdiction to issue notice in income tax assessment: notice by non-jurisdictional AO led to quashing of assessment.

Jurisdiction to issue notice under income tax assessment was examined: the mandatory requirement is that the assessing officer who frames the assessment must issue notice under section 143(2); where the notice was issued by a non-jurisdictional AO and the assessment was thereafter framed by the jurisdictional AO, the assessment framed under section 143(3) was held invalid. The decision relied on precedent to quash the assessment on jurisdictional grounds and allowed the appeal of the assessee due to lack of valid notice by the AO who ultimately framed the assessment.

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Issues: Whether an assessment framed under section 143(3) of the Income-tax Act, 1961 by an Assessing Officer who did not himself issue the notice under section 143(2) is invalid and vitiated for want of jurisdiction and mandatory compliance of notice requirement.

Analysis: The Court examined the sequence where the notice under section 143(2) was issued by a different Ward (non-jurisdictional AO), the assessee objected to the jurisdiction and requested migration, and the assessment was ultimately framed by ITO Ward 9(3) without issuing a fresh notice under section 143(2). The Tribunal applied the principle that issuance of the section 143(2) notice by the AO who ultimately frames the assessment is a mandatory pre-condition and that absence of such jurisdictional notice by the AO who completes assessment renders the process defective. The Tribunal relied on and followed precedent of a coordinate bench dealing with identical facts, which held that assessments framed by the AO without issuing the requisite section 143(2) notice are nullities and liable to be quashed. The Tribunal rejected the Revenue's contention that transfer of jurisdiction within the same city is solely administrative and does not affect the mandatory notice requirement.

Conclusion: The assessment framed under section 143(3) without issuance of notice under section 143(2) by the AO who framed the assessment is quashed; decision is in favour of the assessee.

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