2022 (1) TMI 832 - ITAT DELHI

Validity of the reassessment proceedings u/s 147 - absence of issue of notice u/s 143(2) - Addition u/s 68 - HELD THAT:- A perusal of the assessment order as well as the order of the CIT(A) shows that no notice u/s 143(2) was ever issued to the assessee before completing the assessment u/s 143(3)/147 - it is mandatory to issue notice u/s 143(2) even in reassessment proceedings and non-issuance of the same makes the assessment order illegal and null.

Hon’ble Delhi High Court in the case of PCIT vs. Shri Jai Shiv Shankar Traders Pvt. Ltd [2015 (10) TMI 1765 - DELHI HIGH COURT] has held that the failure of the AO in reassessment proceedings to issue notice u/s 143(2) prior to finalizing the reassessment order cannot be condoned by referring to section 292BB.

We hold that the reassessment proceedings, in the instant case, completed u/s 143(3)/147 are not in accordance with the law in absence of issuance of notice u/s 143(2) of the IT Act. Therefore, we hold that the reassessment proceedings are invalid. The ground raised by the assessee as per Rule 27 of the Income-tax (Appellate Tribunal) Rules is accordingly allowed.