Urban Nirmal LLP Vs ITO (ITAT Kolkata)
ITAT Kolkata held that reassessment framed u/s 147 r.w.s. 144/144B is invalid where mandatory notice u/s 143(2) was not issued. Assessee had originally filed return u/s 139(1) & in response to notice u/s 148, duly intimated AO to treat the original return as return filed pursuant to reopening. Despite this, AO failed to issue notice u/s 143(2) & proceeded to complete reassessment making addition of ₹1.24 crore towards cash credit.
Tribunal admitted the additional legal ground challenging jurisdiction, holding that such a pure question of law can be raised at any stage. It was observed that communication by assessee to treat original return as return in response to notice u/s 148 constitutes valid compliance, thereby making issuance of notice u/s 143(2) obligatory. Relying on PCIT vs Shri Jai Shiv Shankar Traders (P.) Ltd. (Delhi HC) & settled law, ITAT held that failure to issue notice u/s 143(2) is fatal & renders reassessment void ab initio. Accordingly, assessment was quashed as nullity & appeal of assessee was allowed.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 24.03.2025 for the AY 2013-14.
