INCOME TAX ACT, 1961

Section 147

Reassessment - Notice under section 148 - Validity - Absence of fulfillment of mandatory requirement of issuance of notice under section 143(2)

Assessee-company challenged validity of order passed under section 143(3) read with section 147 in absence of issuance of notice under section 143(2). It was submitted that when the prescribed procedure of issuance of notice under section 143(2) had not been followed, then assumption of jurisdiction of issuance of notice of reopening under section 147 itself, was not sustainable and thus the entire order was liable to be set-aside.Held: On perusal of a letter, supplied by AO, it was clarified that no notice under section 143(2) was found to have been served upon the assessee. Further, the AO mentioned all the notices issued by him in the assessment order passed under section 143(3), but there was no mentioning of the notice issue under section 143(2), which substantiated that no such notice under section 143(2) was issued upon the assessee. In absence of fulfillment of mandatory requirement of issuance of notice under section 143(2), assumption of jurisdiction of issuance of notice of reopening itself, was not sustainable and hence, the entire proceeding under section 147 was quashed.