INCOME TAX ACT, 1961

Section 147 Section 143(2)

Reassessment - Validity - Non-issuance of section 143(2) notice - AO taking plea of assessee's participation in reassessment proceedings

Assessee challenged validity of assessment framed by AO under section 147 on the ground of non-issuance of notice under section 143(2). AO's case was that assessee having participation in the assessment proceedings. Therefore, in such cases where the assessee has participated in the re-assessment proceedings in response to section 148 notice, it was not allowed to take objection of service of the notice issued under section 143(2) after completion of assessment. Held: Merely because assessee participated in re-assessment proceedings, pursuant to notice under section 148, it did not obviate mandatory requirement of issuance of notice under section 143(2) before finalizing order of reassessment. From the assessment record it was clear that no such notice was issued as nothing was recorded in proceeding sheet about such notice, nor in any other record showing any notice under section 143(2) was actually sent by AO to assessee. Accordingly reassessment order passed by AO without issuing notice under section 143(2) was invalid and quashed.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2007-08

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