ITAT Bangalore Cancels Notice U/S 143(2) Due to No Notice to Taxpayer

The Assessment Order of the Commissioner of Income Tax (Appeals) (CIT(A)) has been cancelled by the Income Tax Appellate Tribunal (ITAT), Bangalore Bench reason that an obligatory notice under Section 143(2) of the Income Tax Act, 1961 was not served to the taxpayer before the finish of the assessment proceedings.

The taxpayer, Rajiv Gandhi University of Health Sciences (RGUHS) who is been represented via Smt.Suman Lunkar, CA articulated that the assessment finished by the Assessing Officer (AO) is not valid as the mandatory notice under section 143(2) of the Income Tax Act was not served on them. The taxpayer contended that the assessment order must be dismissed because of the statutory issue. The respondent, Assistant Commissioner of Income Tax (Exemptions) was represented by Sri. Sunil Kumar Singh.

An affidavit is been provided by the taxpayer which mentions that the notice under section 143(2) of the Income Tax Act was never served to them, also drawing this fact to the attention of the AO at the time of the assessment proceedings itself but it was not deemed in a statutory perspective.

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The bench accepted the taxpayer’s contention that there was no valid service of the notice as contemplated under section 143(2) of the Income Tax Act and the assessment order must be set aside on this basis alone.

The court observed that the AO did not address the matter of non-service of the notice in the assessment order, despite the fact that the assessee brought it to the AO’s attention during the course of the assessment proceedings and that the CIT(A) did not rule on the basis made by the assessee.

The panel explained that the assessment order is declared unlawful since the statutory notice required by Section 143(2) of the Income Tax Act, 1961 was not served to the assessee.

The assessment order has been set aside by the two-member bench comprised of Shri. Laxmi Prasad Sahu (Accountant Member) and Shri. George George K (Judicial Member)

As a result of the failure to provide the required notice under section 143(2) of the Income Tax Act, the assessee’s appeal was granted, and the assessment order was set aside.