Service of notice under Section 143(2) is mandatory for scrutiny assessment; non-service makes the assessment invalid.

Service of notice under Section 143(2) is a mandatory jurisdictional prerequisite for completing scrutiny assessment under Section 143(3) of the Income-tax Act. As the record showed that the notice had bounced and was not served on the assessee, the Tribunal found the assessment legally unsustainable and held that the defect went to the root of jurisdiction. The appellate authority's order annulling the assessment was therefore sustained, and the Revenue's challenge failed.

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Issues: Whether the assessment under Section 143(3) of the Income-tax Act, 1961 was invalid for want of service of notice under Section 143(2) of the Income-tax Act, 1961.

Analysis: The Tribunal found that the record showed the notice under Section 143(2) had bounced and was not served on the assessee. Since service of the statutory notice is a jurisdictional requirement for completing scrutiny assessment under Section 143(3), the absence of service rendered the assessment legally unsustainable. The Tribunal held that the first appellate authority had correctly treated the defect as going to the root of jurisdiction and had rightly quashed the assessment.

Conclusion: The assessment under Section 143(3) was held to be invalid for non-service of notice under Section 143(2), and the Revenue's challenge failed.

Final Conclusion: The appellate order annulling the assessment was sustained, and the Revenue's appeal was dismissed.

Ratio Decidendi: Service of notice under Section 143(2) is a mandatory jurisdictional prerequisite for a valid scrutiny assessment under Section 143(3), and non-service vitiates the assessment.

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