Naveen Kumar Jha Vs ITO (ITAT Delhi)
ITAT Delhi Quashes Assessment: No 143(2) Notice by Jurisdictional AO- Jurisdictional Defect Fatal, Assessment Invalid- Assessment Without Proper 143(2) Notice Quashed by Tribunal
Assessee challenged the validity of assessment order dated 14.12.2019 passed by ITO Ward-35(8), Delhi. It was found that the only notice u/s 143(2) on record was issued earlier by ITO Ward-38(3), Delhi on 28.09.2018. There was no clarity or record regarding transfer of jurisdiction from Ward-38(3) to Ward-35(8). Thus, the AO who completed the assessment had not issued any notice u/s 143(2).
Tribunal’s Findings:
- Service of notice u/s 143(2) by the jurisdictional AO is a mandatory condition precedent for completing assessment, as settled by the Supreme Court in ACIT Vs. Hotel Blue Moon (321 ITR 362).
- Since the assessment order was framed by an AO who never issued notice u/s 143(2), the defect was fatal & could not be cured.
- Accordingly, the assessment itself was invalid in law & had to be quashed.
- All other grounds raised by both sides became academic.
- Assessment order quashed; appeal of Assessee allowed
FULL TEXT OF THE ORDER OF ITAT DELHI
This assessee’s appeal ITA no. 4817/Del/2025 for assessment year 2017-18 arises against CIT(A)/ NFAC, Delhi’s order dated 11.06.2025 (DIN & Order No. ITBA/NFAC/S/250/2025-26/1076934815(1), in proceedings u/s 143(3) of the Income-tax Act, 1961, hereinafter referred to as the ‘Act’.
