Section 292BB cannot cure jurisdictional error; Time-barred Notice cannot be deemed as valid

Dr. N. Madhava Reddy Vs. ACIT (ITAT Hyderabad)

Facts of the Case

To complete the assessment u/s 143(3), the AO has to issue notice u/s 143(2) to get the jurisdiction to complete the assessment u/s 143(3). As per the provisions of section 143(2), AO has to issue the notice u/s 143(2) within 6 months from the end of the financial year in which the return is furnished. In the given case, AO must issue notice on or before 30/09/2009. But the notice was issued on 20/10/2009. Is the action of the AO proper and the provisions of section 292BB will come to rescue in the given facts of the case ? As per the ratio laid down in the case of PCIT Vs. Silver Line (supra), the Hon’ble Delhi High Court has clearly held a reassessment order cannot be passed without compliance with the mandatory requirement of notice u/s 143(2) being issued as the requirement of issuance of such notice is a jurisdictional one and section 292BB cannot cure jurisdictional error.

Held by ITAT

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