2026 (3) TMI 333 - AT - Income Tax

Jurisdictional validity of statutory notice: absence of a notice from a competent officer voids assessment and quashes order.

The piece addresses whether an assessment under section 143(3) read with section 153A is invalid for want of a valid statutory notice under section 143(2) ... Assessment framed without valid notice - no valid notice u/s. 143(2) had been issued by a jurisdictionally competent Assessing Officer - Validity of assessment framed u/s 153A r.w.s. 143(3) - HELD THAT: - The Assessing Officer relied upon a notice dated 30.09.2020 under section 143(2). Record shows jurisdiction was assumed by the DCIT, Central Circle-31 only on 15.10.2020 by order under section 127, communicated later to the assessee. Therefore, on the date of issuance of the notice the AO did not have jurisdiction. E-filing portal copy attached was the first page of the appraisal report and not the statutory notice. The CIT(A) sought a remand report but the AO merely reiterated issuance of the notice without addressing that jurisdiction under section 127 was assumed only after the notice date. Tribunal held that issuance of a valid notice by a jurisdictionally competent AO is a mandatory precondition for completing assessment under section 143(3) and that section 292BB (which concerns service) does not cure absence of valid issuance. Relying on settled principle that absence of a valid notice under section 143(2) renders the assessment liable to be quashed, the Tribunal concluded the assessment was void ab initio and directed that it be quashed. [Paras 6] Final Conclusion: The Tribunal quashed the assessment for AY 2019-20 as void ab initio because the notice under section 143(2) was issued before jurisdiction was assumed by the Assessing Officer; the Revenue's cross-appeal was rendered infructuous and dismissed. Issues: Whether the assessment framed under section 143(3) read with section 153A of the Income-tax Act, 1961 is void for lack of a valid notice under section 143(2) issued by a jurisdictionally competent Assessing Officer.Analysis: The notice relied upon by the Assessing Officer is dated 30.09.2020, whereas jurisdiction under section 127 was assumed by DCIT, Central Circle-31 on 15.10.2020. Records show the notice page on the e-filing portal contained an appraisal report first page instead of a statutory notice. The Assessing Officer's remand report reiterated issuance of the notice but did not address that jurisdiction was assumed only after the notice date. Issuance of a valid notice by a jurisdictionally competent Assessing Officer is a mandatory precondition for completing assessment under section 143(3) read with section 153A. Section 292BB relates to service of notice and does not cure absence of notice issuance by a competent officer. Precedent establishes that absence of a valid notice under section 143(2) vitiates the assessment and renders it void ab initio.Conclusion: The assessment order dated 01.03.2021 is void ab initio for want of a valid notice under section 143(2) issued by a jurisdictionally competent Assessing Officer; the assessee's appeal is allowed and the revenue's cross-appeal is dismissed as infructuous.Ratio Decidendi: A statutory notice under section 143(2) must be issued by an Assessing Officer who has jurisdiction at the time of issuance; absence of such jurisdictional notice vitiates an assessment under section 143(3) read with section 153A and renders the assessment void ab initio, and section 292BB does not cure non-issuance of a jurisdictional notice.