Case Law Details
Vansa Properties Pvt. Ltd. Vs ITO (ITAT Kolkata)
In a landmark judgment, ITAT Kolkata has annulled the reassessment made for Vansa Properties Pvt. Ltd. vs ITO on grounds of a procedural lapse. The authorities had failed to issue a notice under Section 143(2) within the prescribed time limit, thus leading to this decision.
Analysis: Vansa Properties Pvt. Ltd. challenged the order of the Commissioner of Income Tax, National Faceless Appeal Centre, Delhi, based on a series of grounds. The key contention being that the assessment was flawed as no notice under Section 143(2) was issued by the Assessing Officer (AO).
Upon further review, the ITAT Kolkata found that the AO had indeed failed to issue a notice under Section 143(2) within the stipulated time frame post the filing of the return. As per the Supreme Court’s ruling in the case of Asst. Commissioner of Income Tax vs Hotel Blue Moon, the procedure of Section 143(2) is mandatory and not just a procedural irregularity. The absence of such a notice rendered the entire reassessment process void, thereby supporting Vansa Properties’ appeal.
Conclusion: The ITAT Kolkata’s decision underscores the importance of adhering to procedural guidelines in the assessment process. By failing to issue the notice under Section 143(2) within the defined timeframe, the AO’s reassessment was deemed invalid. This landmark judgment serves as a crucial reminder for tax authorities to strictly follow procedural rules to avoid potential invalidations.
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