ITO Vs Lalita Agarwal (ITAT Delhi)
Manual Section 143(2) Notices Without DIN Invalid: ITAT Quashes Reassessments as Void Ab Initio for Five Years
The Delhi ITAT allowed the assessee’s appeals and quashed reassessment orders for AYs 2012-13 to 2016-17, holding that the assumption of jurisdiction under Section 147 was invalid due to absence of a valid notice under Section 143(2). Though the Revenue produced manually issued notices dated 07.11.2019, the Tribunal found that these notices were neither reflected in the ITBA portal timeline nor issued in conformity with CBDT Circular No.19/2019 mandating computer-generated DIN for all communications after 01.10.2019.
The Revenue failed to show that any reasons were recorded or prior approval of the Chief Commissioner/Director General was obtained for manual issuance, as required under the Circular. Applying para 4 of the Circular, the Tribunal held that such non-DIN notices are deemed to have never been issued and are invalid. Since service of a valid Section 143(2) notice is a jurisdictional prerequisite for reassessment, the entire proceedings were held void ab initio. Consequently, all reassessment orders were quashed and the Revenue’s cross-appeals were dismissed
FULL TEXT OF THE ORDER OF ITAT DELHI
This is a bunch of six appeals – four by the assessee and two by the Revenue, directed against the order of the NFAC, Delhi dated 15.10.2024 for A.Ys 2012-13 to 2016-17 by the assessee and A.Ys 2014-15 and 2015-16 by the Revenue respectively.
