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Reassessment done U/S 148 (of Income Tax Act, 1961) without issuing notice U/S 143(2) (of Income Tax Act, 1961) is invalid.
Reassessment done U/S 148 (of Income Tax Act, 1961) without issuing notice U/S 143(2) (of Income Tax Act, 196…
Notice U/S 148 (of Income Tax Act, 1961) was issued to Rajit Syntex P.Ltd. of reassessing income at Rs. 11,34,435 without issuing notice U/S 143(2) (of Income Tax Act, 1961) as prescribed in the Act. It is not only a procedural irregularity and that in absence of the issuance of statutory notice u/s 143(2) (of Income Tax Act, 1961), the assessment order passed by the Assessing Officer is bad in law and void ab initio. Hence, ITAT held reassessment orders U/S 148 (of Income Tax Act, 1961) passed by AO invalid.-501701
1. Rajit Syntex Pvt. Ltd. is the assessee in this case.
2. Assessing authority issued notice under section 148 (of Income Tax Act, 1961) after reassessing income at Rs. 11,34,435 without issuing notice under section 143(2) (of Income Tax Act, 1961) as prescribed in the Act.
3. In law, it is not only a procedural irregularity and that in absence of the issuance of statutory notice u/s 143(2) (of Income Tax Act, 1961), the assessment order passed by the Assessing Officer is bad in law and void ab initio.
4. CIT(A) on appeal held that the non-issuance of notice u/s 143(2) (of Income Tax Act, 1961) did not make the assessment invalid.
5. Assessee being aggrieved by the orders of CIT(A) contending that the reassessment orders are invalid and are not curable.
6. HELD- ITAT held that orders passed U/S 148 (of Income Tax Act, 1961) are invalid by holding that the non-issuance of the statutory notice u/s 143(2) (of Income Tax Act, 1961) in the instant case is an incurable defect.
7. Therefore, the entire reassessment proceedings were bad in law and void ab initio.
Case Reference - Rajit Syntex Pvt. Ltd. Vs Income Tax Officer.
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