CROCHET TRADE AND INVESTMENT PRIVATE LIMITED,KOLKATA vs. INCOME TAX OFFICER WARD 6(1), KOLKATA , AAYAKAR BHAWAN

ITA 1158/KOL/2026Status: DisposedITAT Kolkata22 October 2026AY 2009-1019 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the issuance of a notice under section 143(2) is a mandatory requirement for the Assessing Officer to assume jurisdiction to complete an assessment when a valid return has been filed. In this case, the Assessing Officer issued a notice under section 148, and the assessee filed a return in response. However, the Revenue was unable to controvert the assessee's submission that no notice under section 143(2) was issued before the completion of the assessment. The Tribunal found no material on record to suggest that such a notice was issued, and therefore, section 292BB of the Act could not be invoked to save the assessment. Relying on the judgment in Balbir Singh vs. ACIT and other cited precedents, the Tribunal concluded that the assessment framed without the mandatory notice under section 143(2) was unsustainable and liable to be quashed. Consequently, the appeal of the assessee was allowed, and the assessment order was quashed. Other contentions on the merits of the case were left open.

What were the facts?

The assessee, Crochet Trade and Investment Private Limited, filed its return for AY 2009-10 declaring an income of Rs. 81,470. The return was processed under section 143(1). Subsequently, the Assessing Officer (AO), with approval from the PCIT, reopened the case under section 147/148, issuing a notice on 31.03.2016. The assessee responded by filing a return on 22.04.2016 and requested the reasons for reopening, which were provided on 20.05.2016. After further submissions, the AO made an addition of Rs. 15,45,968, assessing the total income at Rs. 16,27,456. The assessee's appeal to the CIT(A) was dismissed. The present appeal is before the ITAT against the CIT(A)'s order.

What were the issues?

1. Whether the ex-parte assessment order passed under section 148/147/144 is bad in law as the assessment was completed without issuing the mandatory statutory notice under section 143(2) of the Income Tax Act, 1961? Assessee's contention: The assessment is void ab initio because the AO failed to issue a notice under section 143(2) before completing the assessment, which is a mandatory requirement for assuming jurisdiction when a valid return is filed. The revenue could not prove that such a notice was issued, and section 292BB does not apply. Revenue's contention: The case was completed under section 147/148 read with section 144B after obtaining due approval, and reasons were provided. The lower authorities' orders should be upheld.

Which sections of the Income-tax Act were involved?

Section 143(1),Section 143(2),Section 144,Section 147,Section 148,Section 144B,Section 250,Section 254,Section 292BB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘SMC’ BENCH,

Before: SHRI LAXMI PRASAD SAHU

For Appellant: Shri Yash Baid, AR
For Respondent: Shri Amit Kumar Barua, DR
Hearing: 06.10.2026Pronounced: 22.10.2026

PER LAXMI PRASAD SAHU, ACCOUNTANT MEMBER:

This is an Appeal filed by the Assessee against the order of the Commissioner of Income Tax (Appeal) [“the Ld. CIT(A)”, for short], dated 31.01.2026 with DIN & Order No. ITBA/ALP/S/250/2025- 26/1085404656(1), passed u/s 250 of the Income Tax Act, 1961 (“the Act”, for short) for the Assessment Year 2009-10, arising out of the Assessment order dated 12.09.2016 passed u/s 148/147/144 of the Act on the following Grounds of Appeal:- “1. The ex-parte assessment order u/s 148/147/144 of the I.T.Act, 1961, passed by the Id. A.O. is bad in law as the assessment was complete without the issue of mandatory statutory notice u/s 143(2) of the Income Tax Act, 1961. 2. The ex-parte assessment order u/s 148/147/144

The order continues below.

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