Assessment proceedings u/s 147/148 which were completed without issuing the notice u/s 143(2) are invalid.

Last updated: 08 January 2021

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The Income Tax Appellate Tribunal has ruled that assessment proceedings initiated under sections 147 and 148 are invalid if a notice under section 143(2) was not issued. This decision means that any assessment completed without this crucial procedural step lacks proper jurisdiction. The assessee in this case argued that the assessment order was bad in law due to lack of jurisdiction and other procedural errors.

Court :
ITAT Jaipur

Brief :
The present appeal has been filed by the assessee against the order of the ld. CIT(A), Kota dated 15/01/2018 for the A.Y. 2010-11 wherein the assessee has raised following grounds of appeal:

Citation :
ITA No. 461/JP/2018

IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES “A”, JAIPUR
BEFORE SHRI SANDEEP GOSAIN, JM & SHRI VIKRAM SINGH YADAV, AM

ITA No. 461/JP/2018
Assessment Year :2010-11

Smt. Gyatri Sharma,
B-8, Vivekanand Puram, Matunda Road, Bundi.
cuke
PAN/GIR No.: ABHPA 4265 D
Appellant

Vs.

ITO,
Ward-Bundi.
Respondent

Assessee by: Shri Shravan Kumar Gupta (Adv)
Revenue by : Ms. Chanchal Meena (Addl.CIT)

Date of Hearing : 06/10/2020
Date of Pronouncement : 21/12/2020

ORDER

PER: SANDEEP GOSAIN, J.M.

The present appeal has been filed by the assessee against the order of the ld. CIT(A), Kota dated 15/01/2018 for the A.Y. 2010-11 wherein the assessee has raised following grounds of appeal:

“1.1 The impugned order u/s 147/144 dated 16.03.2016 is bad in law and on facts of the case, for want of jurisdiction, barred by limitation and various other reasons and hence the same may kindly be quashed.

1.2 The action taken u/s 147 is bad in law and on facts of the case, for want of jurisdiction and various other reasons and hence the same may kindly be quashed.

2. The Id. AO has grossly erred in law as well as on the facts of the case in passing the ex parte assessment order, without providing the adequate and reasonable
opportunity of being heard in gross breach of law. Hence the order so passed may kindly be quashed and the additions so may kindly be deleted in full.

3. Rs.16,49,210/-: The Id. CIT(A)has grossly erred in law as well as on the facts of the case in confirming the addition of Rs.16,49,210/- on account of Long term capital gain on sale of residential agriculture land by not accepting the land development expenses/cost and other reasons. Hence the addition so made by the AO and confirmed by the Id. CIT(A) is being totally contrary to the provisions of law and facts on the record and hence same may kindly be deleted in full.

To know more in details find the attachment file

FAQ :

The judgement states that tax assessments completed under sections 147/148 of the Income Tax Act are invalid if a notice under section 143(2) was not issued.

It means the assessment proceedings were conducted without proper legal authority or jurisdiction, rendering the resulting order void.

The relevant sections are 147 (income escaping assessment) and 148 (notice of income escaping assessment), and the requirement for a notice under section 143(2).

The assessee argued that the assessment order was invalid due to lack of jurisdiction, being barred by limitation, and other procedural errors, specifically mentioning the absence of a section 143(2) notice.