Kamla Craft pack Pvt. Ltd. Vs I.T.O (ITAT Ahmedabad)
Section 292BB not applies in cases where mandatory notice was not issued and assessment was invalid as the mandatory notice under Section 143(2) had not been served
In the case of Kamla Craft Pack Pvt. Ltd. Vs I.T.O. decided by the ITAT Ahmedabad, the primary legal question revolved around the validity of an assessment made under Sections 143(3) read with Section 147 of the Income Tax Act without the mandatory notice under Section 143(2) being issued to the assessee. The appeal arose from an order by the Commissioner of Income Tax (Appeals) which upheld the validity of the assessment despite the absence of this crucial notice. The assessee contended that the lack of a notice rendered the assessment invalid, while the CIT(A) argued that since the assessee participated in the proceedings without raising an objection, the assessment could not be invalidated under the provisions of Section 292BB of the Act.
The ITAT found that the absence of the notice under Section 143(2) is not merely a procedural irregularity; it is a fundamental requirement that must be met for an assessment to be valid. The Tribunal referred to various judicial precedents, affirming that the legal provisions demand the issuance of this notice, especially in cases where the return is filed in response to a notice under Section 148. It concluded that Section 292BB could not apply in this context, as it is designed to address issues of non-service or improper service of notices rather than the complete absence of a mandatory notice. Consequently, the Tribunal ruled that the assessment was invalid due to the failure to issue the required notice, thus allowing the assessee’s appeal.
