Reassessment Proceedings Invalidated Due to Delayed Issuance of Notice u/s 143(2): ITAT Delhi Ruling
The Income Tax Appellate Tribunal (ITAT), Delhi Bench, delivered a pivotal judgment in the case of Agrico Organics Ltd. Vs DCIT, addressing the strict adherence required regarding statutory timelines for issuing notices during reassessment proceedings. The Tribunal ruled in favor of the assessee, holding that the failure of the Revenue Department to issue a notice under Section 143(2) of the Income Tax Act 1961 within the prescribed limitation period renders the subsequent assessment order void ab initio.
Case Background and Factual Matrix
The dispute arose from an appeal filed by the assessee against the order passed by the Commissioner of Income Tax (Appeals)-29 [CIT(A)], New Delhi, dated 19.03.2025. This appeal stemmed from an assessment order dated 21.12.2018, which was framed under Section 147 of the Income Tax Act 1961 by the Deputy Commissioner of Income Tax (DCIT), Circle-1(2), pertaining to the Assessment Year (AY) 2011-12.
The primary grievance of the assessee was not merely regarding the additions made but challenged the fundamental jurisdiction of the Assessing Officer (AO) to pass the order. The core contention was that the mandatory notice required under Section 143(2) was not issued within the timeframe stipulated by law, thereby making the assumption of jurisdiction illegal.