Reassessment proceeding against BCCI quashed due to failure of issuance of Notice

Last updated: 05 August 2021

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The Income Tax Appellate Tribunal has dismissed an appeal by the Deputy Commissioner of Income Tax, upholding the quashing of a reassessment order against the Board of Cricket Control in India (BCCI). The tribunal found that the reassessment order was invalid because the necessary notice under Section 143(2) of the Income Tax Act was not properly issued or served. This failure to issue a foundational notice rendered the reassessment proceedings void.

Court :
ITAT Mumbai

Brief :
In Deputy Commissioner of Income Tax Central Circle 6(2), Mumbai v. Board of Cricket Control in India, Wankhede Stadium, D Road, Marine Drive, Mumbai 400 020 [PAN: AAATB0186A] ITA No. 2914/Mum/2017, the Deputy Commissioner of Income Tax Central Circle 6(2), Mumbai ('the Appellant') has challenged correctness of the order dated January 09, 2019 passed by CIT(A) quashing the reassessment order passed by the Appellant without issuance of notice under Section 143(2) of the Income Tax Act, 1961 ('the IT Act'), for the assessment year 2008-09.

Citation :
ITA No. 2914/Mum/2017

In Deputy Commissioner of Income Tax Central Circle 6(2), Mumbai v. Board of Cricket Control in India, Wankhede Stadium, D Road, Marine Drive, Mumbai 400 020 [PAN: AAATB0186A] ITA No. 2914/Mum/2017, the Deputy Commissioner of Income Tax Central Circle 6(2), Mumbai ('the Appellant') has challenged correctness of the order dated January 09, 2019 passed by CIT(A) quashing the reassessment order passed by the Appellant without issuance of notice under Section 143(2) of the Income Tax Act, 1961 ('the IT Act'), for the assessment year 2008-09.

The Hon'ble bench of Income Tax Appellate Tribunal, Mumbai recalling and relying on its previous decision against the same Respondent held the reassessment order cannot be complied with since issuance and service of notice is a 'foundational requirement' for assessment under Section 143(3) read with Section 147 of the IT Act.

Dismissed the appeal.

FAQ :

The reassessment proceeding against BCCI was quashed because the required notice under Section 143(2) of the Income Tax Act, 1961, was not properly issued or served.

Section 143(2) of the Income Tax Act, 1961, is a foundational requirement for assessment proceedings, including reassessments.

The appellant was the Deputy Commissioner of Income Tax Central Circle 6(2), Mumbai.

The assessment year in question was 2008-09.

No, the Income Tax Appellate Tribunal upheld the order quashing the reassessment order, dismissing the appeal.

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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