DCIT Vs Ashutosh Foods (ITAT Delhi)
Reassessment Quashed for Non-Issue of 143(2) – Return Filed After 148 Notice Still Triggers Mandatory Jurisdictional Requirement
The Delhi ITAT dismissed the Revenue’s appeal and allowed the assessee’s cross-objection by quashing the reassessment for AY 2015-16 on the ground that no notice under Section 143(2) was issued after the assessee responded to notice under Section 148. The Tribunal noted that although the assessee did not file a fresh return within 30 days of the 148 notice, it had subsequently requested that the original return filed under Section 139 be treated as the return in response to Section 148, and the Assessing Officer himself acted upon that return while framing the assessment.
Relying on settled law including PCIT v. Staunch Marketing (Delhi HC), Jai Shiv Shankar Traders, Laxman Das Khandelwal (SC) and other precedents, the Tribunal held that once any return is filed or adopted in response to Section 148, issuance of notice under Section 143(2) becomes mandatory, even in ex-parte or best-judgment proceedings. Treating the return as “non-est” and proceeding under Section 144 without 143(2) was held to be legally impermissible and fatal to jurisdiction.
Accordingly, the entire reassessment and the huge additions on alleged doubtful sales and purchases were quashed as void ab initio. The assessee’s cross-objection was allowed and the Revenue’s appeal was dismissed.
FULL TEXT OF THE ORDER OF ITAT DELHI
