Reassessment without mandatory section 143(2) notice is invalid when the section 148 return is relied upon.

Where a return filed in response to a notice under section 148 is relied upon by the Assessing Officer, it is treated as a return under section 139 and notice under section 143(2) becomes mandatory before completing reassessment. The record showed no issuance of such notice, and the assessee's explanation that the return was later e-verified was not rebutted. As the Revenue also failed to dislodge the factual position on notice, the reassessment was held unsustainable in law and ab initio void for want of section 143(2) notice.

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Issues: Whether the reassessment order was vitiated for non-issuance of notice under section 143(2) of the Income-tax Act, 1961 when the return filed in response to notice under section 148 was relied upon by the Assessing Officer.

Analysis: The return filed in response to section 148 was treated by the law as a return under section 139. The assessee's explanation that the return could not be e-verified initially, and was later e-verified before the assessment order, was not rebutted. The record also did not show issuance of notice under section 143(2), and the Revenue did not dislodge that factual position. Since the Assessing Officer used the return filed under section 148, issuance of notice under section 143(2) was mandatory before framing the reassessment. Non-issuance of that notice rendered the reassessment unsustainable in law.

Conclusion: The reassessment order was held to be bad in law and ab initio void for want of notice under section 143(2), and the assessee succeeded.

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