Suncity Niketan Pvt. Ltd. Vs ITO (ITAT Kolkata)
ITAT Kolkata held that passing of reassessment order without issuing any notice under section 143(2) of the Income Tax Act is bad in law and not jurisdictional. Accordingly, order quashed and addition is deleted.
Facts- The assessee in this appeal is aggrieved by the action of CIT(A) in confirming the addition of Rs.17,99,28,555/- made by the Assessing Officer by treating credits in the account of the assessee as income of the assessee from unexplained sources. The assessee apart from challenging the validity of the additions made/confirmed by the lower authorities on merits, has also contested the very validity of the reopening of the assessment order as well as the validity of the assessment order for want of issue of notice u/s 143(2) of the Act.
Conclusion- Hon’ble Supreme Court in the case of ‘ACIT vs. Hotel Blue Moon’ reported in 321 ITR 362 (SC) held that the issue of notice u/s 143(2) is sine qua non to assume jurisdiction to proceed with the assessment in a case. The assessment carried out without issuing any notice u/s 143(2) of the Act in such cases will be bad in law.
Held that the impugned assessment order is hereby quashed and even on merits there is no justification on the part of the Assessing Officer to make the impugned additions and the same are accordingly ordered to be deleted. In the result, the appeal of the assessee stands allowed.
