Which cases are most cited on Section 292BB?

ACIT v. Hotel Blue Moon (321 ITR 362) — 623 citing judgments; CIT v. Laxman Das Khandelwal (417 ITR 325) — 225 citing judgments; Pr. CIT v. Silver Line (383 ITR 455) — 201 citing judgments; CIT v. Rajeev Sharma (336 ITR 678) — 139 citing judgments; Director of Income Tax v. Society For Worldwide Interbank Financial Telecommunications (323 ITR 249) — 128 citing judgments.

How many judgments are there on Section 292BB?

BharatTax indexes 676 ITAT, High Court and Supreme Court judgments that turn on Section 292BB of the Income Tax Act, 1961.

Section 292BB of the Income Tax Act

Q: What is the leading case on Section 292BB of the Income Tax Act?

ACIT v. Hotel Blue Moon (321 ITR 362) is the decision most relied on for Section 292BB, cited in 623 judgments. The issuance of a notice under Section 143(2) within the statutory time limit is mandatory for completing an assessment under Section 143(3), and the failure to do so renders the assessment invalid. This defect is not curable under Section 292BB of the Income Tax Act, 1961.

Income-tax Act, 2025: s.523

Section 292BB of the Income-tax Act, 1961 corresponds to section 523 (Notice deemed to be valid in certain circumstances) of the Income-tax Act, 2025.

Read section 523 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 292BB is ACIT v. Hotel Blue Moon (321 ITR 362), cited in 623 of the 676 judgments on BharatTax that turn on this section.

Leading authorities on Section 292BB

ACIT v. Hotel Blue Moon

321 ITR 362 · 2010 · Supreme Court

623

citing judgments

The issuance of a notice under Section 143(2) within the statutory time limit is mandatory for completing an assessment under Section 143(3), and the failure to do so renders the assessment invalid. This defect is not curable under Section 292BB of the Income Tax Act, 1961.

CIT v. Laxman Das Khandelwal

417 ITR 325 · 2019 · Supreme Court

225

citing judgments

Issuance of a notice under Section 143(2) is a mandatory requirement for completing an assessment when a return is filed, including reassessment under Section 147/143(3). The complete absence of this notice renders the assessment invalid and is not curable by Section 292BB.

Pr. CIT v. Silver Line

383 ITR 455 · 2016 · High Court

201

citing judgments

For reassessment under Section 147, the Assessing Officer must record reasons and communicate them to the assessee. An assessee's participation in proceedings pursuant to a Section 148 notice does not obviate the mandatory requirement of recording and communicating reasons or issuing a Section 143(2) notice.

CIT v. Rajeev Sharma

336 ITR 678 · 2011 · High Court

139

citing judgments

It is mandatory for the Assessing Officer to issue a notice under Section 143(2) within the statutory period specified in Section 148, after applying mind to the material on record and being satisfied about escaped income. The provisions of Section 143(2) are mandatory in reassessment proceedings initiated under Section 148.

Director of Income Tax v. Society For Worldwide Interbank Financial Telecommunications

323 ITR 249 · 2010 · High Court

128

citing judgments

Reassessment proceedings are invalid if the Assessing Officer fails to issue a mandatory notice under Section 143(2) of the Income-tax Act after the assessee files a return in response to a Section 148 notice and scrutinizes that return.

Pr. CIT v. Shri Jai Shiv Shankar Traders Pvt. Ltd.

383 ITR 448 · 2016 · High Court

105

citing judgments

The issuance of a notice under Section 143(2) of the Income-tax Act is a mandatory jurisdictional requirement for completing an assessment or reassessment. Failure to issue this notice renders the assessment order invalid, even if the return of income is filed belatedly or in response to a Section 148 notice.

CIT v. Salarpur Cold Storage (P.) Ltd.

50 Taxmann.com 105 · 2014 · High Court

citing judgments

An assessment framed under Section 143(3) is invalid if the Assessing Officer fails to issue a notice under Section 143(2) of the Income-tax Act within the specified time period, as the AO lacks jurisdiction, rendering the assessment order non-est.

Alpine Electronics Asia Pte. Ltd. v. Director General of Income Tax

341 ITR 247 · 2012 · High Court

citing judgments

A notice under Section 143(2) of the Income-tax Act is mandatory even in reassessment proceedings initiated under Section 147 or Section 148. The proviso to Section 148(1) specifically extends the period for issuance of such a notice, affirming its necessity.

Mavis Satcom Ltd. v. Deputy CIT

337 ITR 389 · 2011 · High Court

citing judgments

The present case is cited as authority for the proposition that notices issued under Section 148 of the Income-tax Act, 1961, are valid even if they do not refer to the reasons recorded for initiating reassessment proceedings, provided the reasons are communicated to the assessee. Furthermore, the issue of jurisdiction under Section 124(3) and the validity of notice under Section 143(2) are also key areas addressed.

ACIT v. Geno Pharmaceuticals Ltd.

32 Taxmann.com 162 · 2013 · High Court

citing judgments

The Assessing Officer cannot assume jurisdiction to complete reassessment proceedings under Sections 143(3) read with 147 if a notice under Section 143(2) has not been issued. Non-issuance of a Section 143(2) notice is not a curable defect under Section 292BB and renders the reassessment order patently illegal.

Judgments on Section 292BB

M/S. Osian Stock Broking Pvt. Ltd., Kolkata vs. Income Tax Officer, Ward-6(1), Kolkata

In the result, appeal of the assessee is allowed

ITA 320/KOL/2022[2008-2009]Status: DisposedITAT Kolkata16 Jan 2024AY 2008-2009

Bench: Shri Rajpal Yadav, Hon’Ble & Dr. Manish Borad, Hon’Blei.T.A. No. 320/Kol/2022 Assessment Year: 2008-09 M/S. Osian Stock Broking Pvt. Ltd. Income Tax Officer, Ward – 6(1), Unit No. 1501, 15Th Floor Vs Kolkata Diamond Heritage 16, Strand Road Kolkata – 700001 [Pan: Aaaco3479N] अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri S.K. Pransukha, Fca Revenue By : Shri Manas Mondal, Addl. Cit, Sr. D/R सुनवाई क" तारीख/Date Of Hearing : 13/12/2023 घोषणा क" तारीख /Date Of Pronouncement: 16/01/2024 आदेश/O R D E R Per Dr. Manish Borad: The Above Captioned Appeal Is Directed At The Instance Of The Assessee Against The Order Of The National Faceless Appeal Centre (Hereinafter The “Ld. Cit(A)”) Dt. 17/05/2022, Passed U/S 250 Of The Income Tax Act, 1961 (“The Act”) For The Assessment Year 2008-09. 2. Though The Assessee Has Raised Several Grounds Of Appeal, At The Outset, The Ld. Counsel For The Assessee Submitted That The Case Of The Assessee Is Squarely Covered In Favour Of The Assessee By The Decision Of The Co-Ordinate Bench Of The Itat In The Assessee’S Own Case For Assessment Year 2009-10, Wherein The Tribunal While Dealing With The Issue, That Whether The Date On Which The Assessing Officer Has Signed The Notice U/S 143(2) Or The Date On Which The Notice Is Actually Sent To The Assessee Via E-Mail, Has To Be Considered For The Purpose Of Determining

For Appellant: Shri S.K. Pransukha, FCAFor Respondent: Shri Manas Mondal, Addl. CIT, Sr. D/R

Section 143(2)Section 143(3)Section 147Section 148Section 148ASection 250

Smita Biswas, Jalpaiguri vs. A.C.I.T., Circle-1(1), Jalpaiguri

In the result, the appeal of the assessee is allowed

ITA 464/KOL/2022[2016-2017]Status: DisposedITAT Kolkata05 Jan 2024AY 2016-2017

Bench: Shri Rajesh Kumar]

Section 127(1)Section 143(2)

Ghspl Sambhav Knj Healthcare LLP, Kolkata vs. DCIT, Cir-50(1), Kolkata.

In the result, appeal of the assessee is allowed for statistical purposes

ITA 884/KOL/2023[2017-18]Status: DisposedITAT Kolkata01 Jan 2024AY 2017-18

Bench: Shri Sanjay Garg & Shri Girish Agrawalassessment Year: 2017-18

For Appellant: Shri Anil Kochar, AdvocateFor Respondent: Shri Abhijit Kundu, CIT, DR

Section 142(1)Section 143(1)Section 143(2)Section 143(3)Section 292BSection 68Section 69A

Kevin International, Haridwar vs. DCIT, Circle Haridwar, Haridwar

In the result, the appeal of the assessee is allowed

ITA 5363/DEL/2017[2012-13]Status: DisposedITAT Dehradun22 Dec 2023AY 2012-13

Bench: Shri M. Balaganesh & Shri Yogesh Kumar Us(Through Video Conferencing) M/S. Kevin International, Vs. Dy. Cit, C/O. Balesh Bhargava-Adv, Circle, Haridwar 56, Niranajani Akhara, Mayapur, Haridwar (Appellant) (Respondent) Pan: Aajfk4514C

For Appellant: Shri. K. K. Juneja, AdvFor Respondent: Smt Poonam Sharma, Add. CIT

Section 119Section 143Section 143(2)Section 143(3)Section 80I

ITO 3(1)(1), Mumbai vs. Aaress Realty Private Limited, Mumbai

In the result, the appeal filed by the Revenue is dismissed and the cross objection

ITA 794/MUM/2023[2013-14]Status: DisposedITAT Mumbai13 Dec 2023AY 2013-14

Bench: Shri Om Prakash Kant, Am & Ms. Kavitha Rajagopal, Jm Income Tax Officer 3(1)(1) Aaress Realty Private Limited Room No. 666, 6Th Floor, 810, 8Th Floor, Raheja Centre, Aayakar Bhavan, M. K. Road, Vs. Free Journal Marg, Nariman Point, Mumbai-400 020 Mumbai-400 021

For Respondent: Shri Eknath Shirke

Section 132(4)Section 143(1)Section 143(2)Section 143(3)Section 147Section 148Section 250Section 68Section 80C

Joint Commissioner of Income Tax (in- Situ), Central Circle, Jabalpur vs. Manish Kumar Sarogi, Katni

Accordingly, the appeals in I.T.A.No.39/JAB/2023, 21/JAB/2019 and 62/JAB/2019 of the Revenue are dismissed for having become in-fructuous

ITA 39/JAB/2023[2009-10]Status: DisposedITAT Jabalpur01 Dec 2023AY 2009-10