RIDDHIMAN REALCON LLP (FORMERLY RIDDHIMAN REALCON PVT. LTD.,),KOLKATA vs. ITO, WARD 9(3),, KOLKATA

ITA 1735/KOL/2025Status: DisposedITAT Kolkata15 December 2025AY 2012-2013Bench: SHRI RAJESH KUMAR, AM\nAND\nSHRIPRADIP KUMAR CHOUBEY, JM\n\nITA No.1735/KOL/2025\n(Assessment Year:2012-13)\nRiddhiman Realcon LLP\n(Formerly Riddhiman Realcon\nPvt. Ltd.)\n5/14/1, Canal East Road,\nKolkata-700067, West Bengal\n(Appellant)\nVs.\nITO, Ward 9(3)\nAaykar Bhawan, 5th Floor, P-7,\nChowringhee Square,\nKolkata-700069, West Bengal\n(Respondent)\n\nPAN No. AAFCR6253G\nAssessee by\n: Shri Somnath Ghosh, AR\nRevenue by\n: Shri S.B. Chakraborthy, DR\n\nDate of hearing:\nDate of pronou5 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the issuance of a notice under Section 143(2) of the Income Tax Act, 1961, is mandatory for the Assessing Officer who frames the assessment under Section 143(3). In this case, the notice under Section 143(2) was issued by ITO Ward 41(2), Kolkata, and subsequently, the case was transferred to ITO Ward 9(3), Kolkata. However, ITO Ward 9(3), Kolkata, framed the assessment without issuing a fresh notice under Section 143(2) to the assessee. The Tribunal found that the facts were substantially similar to the decision in ARS Financial Consultants Pvt. Ltd. Vs. ITO, where a coordinate bench had held that an assessment framed by the jurisdictional AO without issuing a Section 143(2) notice, when such notice was issued by a non-jurisdictional AO, is invalid and a nullity. Therefore, respectfully following the precedent, the Tribunal quashed the assessment framed under Section 143(3) on the ground that the notice under Section 143(2) was issued by a non-jurisdictional officer and not by the officer who framed the assessment. The appeal of the assessee was allowed.

What were the facts?

The assessee, Riddhiman Realcon LLP, filed its return of income for Assessment Year 2012-13 declaring a loss. The case was selected for scrutiny under CASS. A notice under Section 143(2) was initially issued by ITO Ward 41(2), Kolkata, on 07.08.2013. The assessee objected to this notice, stating that the jurisdiction lay with ITO Ward 6(3), Kolkata. Subsequently, the case was transferred to ITO Ward 9(3), Kolkata. This Assessing Officer (AO) framed an assessment order under Section 143(3) on 11.03.2015, assessing income at ₹1,11,77,957/- with an addition under Section 68 for unexplained cash credit. The assessee appealed this order to the National Faceless Appeal Centre (NFAC), Delhi, which upheld the assessment. The present appeal is against the NFAC's order.

What were the issues?

1. Whether the assessment order framed under Section 143(3) of the Income Tax Act, 1961, is void ab initio and invalid in law, as it was framed by the Assessing Officer (ITO Ward 9(3), Kolkata) without issuing a notice under Section 143(2) of the Act to the assessee. Assessee's contention: The assessee argued that the assessment framed is invalid and a nullity because the AO who framed the assessment (ITO Ward 9(3), Kolkata) did not issue the mandatory notice under Section 143(2). The initial notice was issued by a non-jurisdictional AO (ITO Ward 41(2), Kolkata), and after the case was transferred, no fresh notice under Section 143(2) was issued by the AO who completed the assessment. The assessee relied on the decision in ARS Financial Consultants Pvt. Ltd. Vs. ITO. Revenue's contention: The revenue contended that the transfer of jurisdiction from one AO to another within the same city is an administrative matter and therefore, the assessee's argument has no merit.

Which sections of the Income-tax Act were involved?

Section 143(2),Section 143(3),Section 142(1),Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, KOLKATA

Before: SHRI RAJESH KUMAR, AM & SHRIPRADIP KUMAR CHOUBEY, JM

For Appellant: Shri Somnath Ghosh, AR
For Respondent: Shri S.B. Chakraborthy, DR
Pronounced: 04.12.2025

Per Rajesh Kumar, AM:

This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)"] dated 12.06.2025 for the AY 2012-13. 2. The only issue pressed at the time of hearing is ground no.1, which is extracted below:-

“FOR THAT the Ld. Commissioner of Income Tax (Appeals), NFAC failed to appreciate that none of the conditions precedents existed for and/or were fulfilled by the Ld. Income Tax Officer, Ward 4(3), Kolkata for his specious action of assuming juri iction to frame the assessment order U/s.143(3) of the Income Tax Act, 1961

The order continues below.

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