Mandatory section 143(2) notice in reassessment; complete omission creates a jurisdictional defect and defeats validity.

Notice under section 143(2) is mandatory where a return is taken up for scrutiny in reassessment or regular assessment proceedings, and its complete omission creates a jurisdictional defect. The text further states that section 292BB cures only defects in service of notice, not the absence of issuance itself. On that basis, a reassessment framed under sections 147 and 144 without issuing notice under section 143(2) cannot be sustained and is treated as invalid in law.

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Issues: Whether reassessment framed under sections 147 and 144 of the Income-tax Act, 1961 without issuance of notice under section 143(2) was valid.

Analysis: The assessment records indicated that the return had been filed before completion of the reassessment. The governing legal position applied was that notice under section 143(2) is mandatory where the return is to be scrutinised in reassessment or regular assessment proceedings, and its absence creates a jurisdictional defect. The deeming fiction under section 292BB was treated as inapplicable to a failure to issue notice, because it cures only defects in service and not the complete omission to issue the notice. On the same reasoning, the reassessment order passed without such notice could not be sustained.

Conclusion: The reassessment was held invalid and bad in law for want of notice under section 143(2), and the issue was decided in favour of the assessee.

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