Ozone Builders & Developers Pvt. Ltd. Vs DCIT (ITAT Delhi)
Delhi ITAT Quashes Assessment for Want of Fresh Section 143(2) Notice After Change of Jurisdiction
The Delhi ITAT quashed the assessment framed under section 143(3), holding that the successor Assessing Officer, who completed the assessment after a change of jurisdiction, had not issued a fresh notice under section 143(2). Although the original notice had been issued by DCIT, Circle-I, Faridabad, the assessment was ultimately completed by DCIT, Circle-II, Faridabad, without issuing a fresh statutory notice after assuming jurisdiction.
The Tribunal admitted the assessee’s additional legal ground, relying on the Supreme Court’s decision in NTPC Ltd., and held that the absence of a valid notice under section 143(2) by the jurisdictional Assessing Officer was a jurisdictional defect that could not be cured. It followed the Delhi ITAT decision in Naveen Kumar Jha v. ITO, which in turn applied the Supreme Court’s ruling in ACIT v. Hotel Blue Moon, emphasizing that issuance of a valid notice under section 143(2) by the officer framing the assessment is a mandatory requirement.
Accordingly, the Tribunal held the assessment to be without jurisdiction and quashed the assessment order. Since the appeal was allowed on this legal ground, all other grounds on merits were treated as academic.
Cases Discussed
- Naveen Kumar Jha vs. ITO (ITAT Delhi), ITA No. 4817/Del/2025
- Rakshit Estate Pvt. Ltd. vs. ITO, Gurgaon (ITAT Delhi), ITA No. 3615/Del/2024
- CIT vs. Lakshman Das Khandelwal (SC), Civil No. 6261-6262 of 2019
- TPC Ltd. (SC), 229 ITR 383
- ACIT v. Hotel Blue Moon (SC), (2010) 321 ITR 362 (SC)
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal by the assessee is arising out of the order of the Ld. Commissioner of Income Tax (Appeals), Faridabad (hereinafter referred as “CIT(A)”) in Appeal No. 10419/2016-17 dated 31.3.2019. Assessment was framed by the DCIT, Circle-II, Faridabad for the assessment year 2013-14 u/s. 143(3) of the Income Tax Act, 1961 (hereinafter referred the “Act”).
