Section 292BB of the Income Tax Act

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.