Mandatory notice under section 143(2) after a return in response to section 148; reassessment quashed for jurisdictional defect.

Where a return is filed in response to a notice under section 148, issuance of notice under section 143(2) remains mandatory before completion of reassessment. The ITAT Delhi held that, since the record did not show any such notice before the reassessment under section 144B read with section 147, the assessment was vitiated by a jurisdictional defect. The absence of notice under section 143(2) rendered the reassessment illegal and void ab initio, so the additional ground was allowed and the reassessment was quashed in favour of the assessee.

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Issues: Whether reassessment could be sustained when the return filed in response to notice under section 148 was acted upon but no notice under section 143(2) was issued.

Analysis: The assessee filed a return in response to the notice under section 148. The record did not show issuance of notice under section 143(2) before completion of the reassessment under section 144B read with section 147. Once a return is filed in response to notice under section 148, issuance of notice under section 143(2) is mandatory before framing the assessment. In the absence of such notice, the reassessment suffers from a jurisdictional defect and cannot be sustained.

Conclusion: The reassessment order was illegal and void ab initio. The additional ground was allowed and the reassessment was quashed in favour of the assessee.

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