Harjeet Singh Chhabra Vs ITO (ITAT Raipur)
The case of Harjeet Singh Chhabra vs. ITO pertains to the reassessment proceedings initiated by the Income Tax Department for the Assessment Year 2013-14. The primary issue before the ITAT Raipur was the validity of the reassessment framed under Section 147 read with Section 143(3) of the Income Tax Act, 1961 (“the Act”) when the mandatory notice under Section 143(2) had not been issued or served to the assessee. The assessee challenged the reassessment order on both legal and merit-based grounds, asserting that failure to issue the statutory notice rendered the reassessment void ab initio.
Factual Background
The assessee received a notice under Section 148 from ITO, Ward-3(1), Raipur dated 23.03.2018, followed by another notice from ITO-1(3), Raipur dated 03.08.2018, without any official transfer order under Section 127. The reassessment was subsequently completed under Section 147 r.w.s 143(3). However, the assessment order mentioned issuance of a notice under Section 143(2) on 12.10.2018, prior to the filing of the return by the assessee on 17.11.2018.
The assessee contended that:
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The notice under Section 143(2) is mandatory for framing assessment under Section 143(3) and, by extension, for reassessment under Section 147.
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Issuance of a notice prior to filing of the return was factually and legally impossible.
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The department failed to provide any proof of service of the notice, which is a non-rectifiable defect going to the root of the jurisdiction.
The Department argued that the date was a typographical error, which could be rectified, but no evidence was produced to substantiate this claim.
