Case Law Details
Mohan Yadav Vs ITO (ITAT Indore)
Introduction: The case of Mohan Yadav Vs ITO recently adjudicated by the Income Tax Appellate Tribunal (ITAT) in Indore, elucidates an important precedent concerning the Income Tax Act’s procedural requirements. The key issue under examination was the necessity of issuing a notice under Section 143(2) of the Income Tax Act within the specified time frame.
Analysis: The case hinged on the non-issuance of notice under Section 143(2) by the Assessing Officer (AO) within the stipulated time limit. The AO was found to have issued notices retrospectively, following the finalisation of the assessment order. As a result, the ITAT quashed the assessment order passed under Section 143(3) on the basis of invalid jurisdiction.
The judgement underlines the importance of the procedural requirements under the Income Tax Act, in particular the serving of a notice under Section 143(2). The court referred to the precedent set by the Supreme Court in the case of CIT vs. Laxman Das Khandelwal, where it was held that the service of the notice within the prescribed time frame is crucial for a valid assessment order.
Interestingly, the court distinguished between cases where the assessee participated in proceedings without a timely notice and cases where no notice was issued at all. In the latter scenario, the assessment order was held to be null and void.
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