Anil Kumar Parekh Vs ITO (ITAT Raipur)
The ITAT Raipur allowed the assessee’s appeal against the CIT(A)/NFAC order dated 24 March 2025 for AY 2013-14. The assessee challenged the reassessment order dated 24 March 2022 passed under Sections 147 read with 144B, contending that the Assessing Officer had failed to issue and serve a notice under Section 143(2) after the assessee filed its return on 11 April 2021 in response to the notice under Section 148 dated 30 March 2021. The assessee also challenged additions of Rs.11 lakh relating to alleged bogus long-term capital gains on sale of shares under Section 68 and Rs.11,000 towards alleged commission expenditure under Section 69C.
At the hearing, no one appeared for the assessee, though an adjournment application was filed and rejected. The Tribunal considered the submissions of the Senior Departmental Representative and the material available on record. The principal issue was whether the reassessment could be sustained when there was no evidence that a notice under Section 143(2) had been served on the assessee.
The assessment order stated that a Section 143(2) notice had been issued on 30 June 2021. However, the Assessing Officer’s report dated 17 June 2025, obtained at the Tribunal’s direction, specifically stated that although the notice had been issued on 30 June 2021, no details regarding its service were available in the system. The Assessing Officer further stated that an attempt had been made to trace the physical dispatch register, but it could not be traced. The Revenue therefore could not produce proof establishing service of the notice.
