SUNSHINE DEALTRADE PRIVATE LIMITED,KOLKATA vs. THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1,, RAIPUR

ITA 212/RPR/2026Status: DisposedITAT Raipur25 September 2026AY 2015-201623 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessment order passed under Section 153C read with Section 143(3) is a nullity if a mandatory notice under Section 143(2) is not issued after the assessee files a return in response to a notice under Section 153C. In both the appeals, the AO had not issued the mandatory notice under Section 143(2) after the assessees filed their returns in response to the Section 153C notices. Therefore, following its own previous decisions, the Tribunal quashed the assessment orders. Since the assessees succeeded on this legal ground, the other grounds challenging the additions on merit were not adjudicated. The ratio decidendi is that the procedural requirement of issuing a notice under Section 143(2) after a return is filed in response to a Section 153C notice is mandatory for a valid assessment.

What were the facts?

The Income Tax Appellate Tribunal (ITAT) heard two appeals: ITA No. 212/RPR/2026 by Sunshine Deal Trade Private Limited for AY 2015-16 and ITA No. 211/RPR/2026 by Hi Tech Power and Steel Limited for AY 2013-14. Both assessees are challenging orders of the CIT(A), Raipur-3. A search action on the Hi-tech group on 17.09.2019 yielded documents related to Sunshine Deal Trade Private Limited. Proceedings under Section 153C of the Income Tax Act, 1961 were initiated, with notices issued on 26.06.2021. The Assessing Officer (AO) made additions of Rs. 50,00,000/- and Rs. 3,12,00,000/- under Section 69A for AY 2015-16, which were upheld by the CIT(A). For AY 2013-14, an addition of Rs. 14,25,00,000/- was made under Section 68. The assessees contended that the assessments were bad-in-law.

What were the issues?

The Tribunal had to decide the following issues: 1. Whether the assessment order passed under Section 153C read with Section 143(3) is bad-in-law and void-ab-initio for not issuing a mandatory notice under Section 143(2) of the Income Tax Act, 1961, after the assessee filed a return in response to the Section 153C notice. Assessee's contention: The assessment is bad-in-law and void-ab-initio due to the non-issuance of the mandatory notice under Section 143(2) as prescribed, rendering the entire assessment without jurisdiction. They also argued that the notice under Section 143(2) was issued beyond the statutory time limit as amended by the Finance Act, 2021. Revenue's contention: Not recorded in the judgment.

Which sections of the Income-tax Act were involved?

Section 153C,Section 143(3),Section 143(2),Section 69A,Section 68,Section 132,Section 127,Section 282A,Section 153D,Section 153A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RAIPUR BENCH, RAIPUR

Before: SHRI R. K. PANDA & SHRI PARTHA SARATHI CHAUDHURY

For Appellant: Shri Veekaas S Sharma, CA
For Respondent: Shri Rituparna Namdeo, CIT-DR

PER R.K. PANDA, VP:

ITA No.212/RPR/2026 filed by the assessee - Sunshine Deal Trade Private Limited is directed against the order dated 20.01.2026 of the Ld. CIT(A), Raipur-3 relating to assessment year 2015-16. ITA No.211/RPR/2026 filed by the assessee - Hi Tech Power and Steel Limited is directed against the order dated 16.01.2026 of the Ld. CIT(A), Raipur-3 relating to assessment year 2013-14. Since common grounds have been raised by the respective assessees in both the appeals, therefore, t

The order continues below.

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