Dhirendra Chandra Biswas Vs ACIT (ITAT Kolkata)
Notice u/s 143(2) Not in Prescribed CBDT Format Held Invalid & Void Ab Initio-ITAT Kolkata Quashes Assessment
Assessee, a government-authorized distributor under the Public Distribution System, filed an appeal against the order of CIT(A), NFAC upholding the assessment u/s 143(3). The main contention was that the notice u/s 143(2) issued on 10.08.2018 was invalid as it did not conform to the mandatory CBDT Instruction No. F.225/157/2017/ITA-II dated 23.06.2017, prescribing specific formats for scrutiny notices under the electronic assessment scheme.
Assessee submitted that the improper notice vitiated the entire assessment, rendering it void ab initio. Tribunal examined the notice & found it was not in the prescribed format mandated by CBDT Instruction. Citing the decision in Shib Nath Ghosh v. ITO (ITA No. 1812/KOL/2024, dated 29.11.2024) & UCO Bank v. CIT (237 ITR 889 SC), it held that CBDT instructions issued u/s 119 are binding on departmental authorities, & non-compliance renders the assessment invalid.
Bench observed that since the foundation notice u/s 143(2) was defective, all subsequent proceedings, including the assessment order dated 23.12.2019, were invalid & void ab initio. Accordingly, the assessment was quashed.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 23.07.2025 for the AY 2017-18.
