ITAT Quashes Assessment as Mandatory Notice u/s 143(2) was Issued by a Different AO

ITAT Quashes Assessment as Mandatory Notice u/s 143(2) was Issued by a Different AO

Brief Facts of the Case

The case concerns the assessee, Yashbir Singh, for the Assessment Year 2017-18. The assessee challenged the validity of the assessment order dated 25th December 2019, on a fundamental legal ground.

The core issue was a jurisdictional defect:

• The assessment order was framed by the Income Tax Officer, Ward-5, Panipat.
• However, the mandatory scrutiny notice under Section 143(2) of the Income-tax Act was issued by a different officer, the Income Tax Officer, Ward-2, Fatehabad.

Decision of the Tribunal

The ITAT allowed the assessee’s appeal and quashed the entire assessment order. The Tribunal’s decision was based on the following clear legal position:

• Mandatory Condition: The issuance of a notice under Section 143(2) by the Assessing Officer who frames the assessment is a mandatory condition for a valid assessment.
• Jurisdictional Error: In this case, the Assessing Officer who passed the final order had not issued the requisite Section 143(2) notice.
• Supreme Court Precedent: The Tribunal relied on the landmark Supreme Court decision in ACIT Vs. Hotel Blue Moon, which firmly establishes that failure to issue this notice is a fatal flaw that invalidates the assessment.

Since the assessment was quashed on this preliminary legal ground, all other issues on the merits of the case were rendered academic and were not adjudicated.

Case Citation

Yashbir Singh vs. ITO, Ward-5, Panipat

• Appeal Number: ITA No. 5174/Del/2025 
• Date of Judgment: 13th October 2025 
• Tribunal: Income Tax Appellate Tribunal, Delhi Bench ‘SMC’