TaxTMI 
TaxTMI 
2025 (11) TMI 1299
X X X X Extracts X X X X
X X X X Extracts X X X X
....assessment order u/s 143(3) r.w.s. 147 of the Income Tax Act, 1961 ["the Act" for short) in gross violation of the principles of Natural Justice. 1.2 While doing so the Ld. CIT(A) failed to appreciate that: (a) The Order is passed by him without affording any fair, reasonable and sufficient opportunity of being heard to the Appellant; (b) The Assessee (Appellant) was not aware of the transfer of the appeal to the CIT(A), NFAC and therefore no submissions could not be made; and; (c) Even the assessment was framed in gross violation of principles of Natural Justice and on the basis of certain material never confronted to the Appellant and the same deserves to be quashed; 1.3 It is therefore submitted that the order passed by the Ld. CIT(A) affirming the order of the Ld. AO deserves to be quashed. ON JURISDICTION AND REASSESSMENT: 2.1 In the facts and circumstances of the case, and in law, the Ld. CIT(A) erred in affirming the assessment order despite the fact that no Notice u/s 143(2) of the Act has been issued on the Assessee by the AO within the time provided under the Act and as such the assessment order passed by the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ange. 3.2 While doing so the Ld. CIT(A) failed to appreciate that: (a) The sale of shares was rightly claimed as exempt long term capital gains w/s 10(38) which was earned on sale of shares through Bombay Stock Exchange (BSE), a recognized stock exchange; (b) The sale as well as purchase of shares is evidenced by various documents including the broker notes from registered brokers, bank statements, etc.; (c) There is no allegation whatsoever, that the shares sold by the Appellant were purchased by tainted parties as mentioned in the list reproduced in the order, neither has the AO produced any evidence in this regard to manifest that the transactions carried out by the Appellant were bogus; (d) In any case, the entire addition is based simply on certain unconfronted statements of some unrelated third parties before the Department and other Authorities in some unconnected proceedings and therefore unsustainable; (e) Neither any investigation nor any proceedings whatsoever have ever been initiated by Securities and Exchange Board of India (SEBI) against the brokers or the Appellant as regards the impugned transactions; and; ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... The learned CIT(A), vide impugned order, dismissed the appeal filed by the assessee. Being aggrieved, the assessee is in appeal before us. 5. We have considered the rival submissions and perused the material available on record. It is the plea of the assessee that in the present case, the assessment under section 144 read with section 147 of the Act is null and void as no notice under section 143(2) of the Act was issued and served upon the assessee. In order to check the veracity of the contention of the assessee, time was granted to the Revenue to obtain a report from the Jurisdictional Assessing Officer regarding the issuance of the notice under section 143(2) of the Act, after examination of the assessment record. During the hearing on 06/10/2025, the learned Departmental Representative ("learned DR") furnished the letter dated 30/09/2025 by the Assistant Commissioner of Income Tax, Circle-42(3)(1), Mumbai, submitting as follows: - *** This space has been left blank intentionally. P.T.O *** 6. Thus, the Revenue neither could produce the notice issued under section 143(2) of the Act nor could it provide the details of the said notice before us. In addition to the....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... matter." 8. Therefore, in view of the aforesaid decision of the Hon'ble Supreme Court, we are of the considered view that the entire reassessment proceedings under section 144 read with section 147, in the present case, stood vitiated as the AO lacked jurisdiction in the absence of notice under section 143(2) of the Act. Hence, the assessment order passed under section 144 read with section 147 of the Act is quashed. As a result, Ground no.2.1 raised in the assessee's appeal is allowed. 9. As we have quashed the assessment order for this short reason, the other issues raised in this appeal are kept open. 10. In the result, the appeal by the assessee is allowed. Order pronounced in the open Court on 15/10/2025 ============= Document 1 OFFICE OF THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-42(3)(1), MUMBAI ROOM NO .- 752, 7" FLOOR, KAUTILYA BHAVAN, BANDRA KURLA COMPLEX, BANDRA(E), MUMBAI-400051 E-MAIL: [email protected] DATE: 30.09.2025 No.ACIT-42(3)(1)/ Wazerra S. Mithiborwala/2025-26 To The St. AR, IT'AT-G, Bench Mumbai Sir/Madam Sub: Verification of issuance of notice u/s 143(2) in the reassessment proceedings in the ca....