Contemporary News Pvt. Ltd. Vs ITO (ITAT Kolkata)
Assessment quashed – Invalid notice u/s 143(2) issued by non-jurisdictional AO; entire proceedings held void ab initio – ITAT Kolkata
In Contemporary News Pvt. Ltd. vs ITO (A.Y. 2012-13), the assessee challenged validity of best-judgment assessment u/s 144 mainly on the ground that no valid notice u/s 143(2) was issued or served. The Tribunal examined the order sheet and documents, including the notice and found that although the order sheet entry dated 04.09.2014 was signed by ITO Ms. Runu Saha, the actual notice u/s 143(2) was signed by another officer, Mr. Barun Kumar Roy, who did not hold jurisdiction over the case.
The ITAT held that issuance of notice u/s 143(2) by a non-jurisdictional officer is not a curable procedural defect but a fundamental jurisdictional flaw. It further noted absence of proof of service and inconsistencies in the AO’s claim that notice was issued and served on the same date. Relying on Supreme Court rulings in Hotel Blue Moon and Laxman Das Khandelwal, the Tribunal concluded that complete absence of valid notice renders the assessment void.
Accordingly, the assessment order dated 19.03.2015 was quashed as void ab initio, and since the legal ground succeeded, issues on merits such as addition u/s 68 became academic. The assessee’s appeal was allowed.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
