Procedural lapses in assessment cannot be overlooked: Agra ITAT set aside assessment as void ab-initio
Hon’ble Agra ITAT has held that procedural lapses in assessment, especially in cases involving late return filing, cannot be overlooked. The tribunal found that, after the time period for voluntary return expired, any further assessment action must necessarily proceed under section 147, initiated by a section 148 notice; an assessment simply under section 144 on the basis of an unsigned section 142(1) notice is fundamentally invalid.
The order relies on principles recognized in earlier cases-such as Dr. Vijay Kumar Datla v. ACIT-that when the return is not filed within the prescribed period, the only valid path is through reassessment, not best judgment assessment, to preserve the taxpayer’s procedural rights and statutory safeguards. By setting aside the assessment as void ab initio, the tribunal reinforces that compliance with core procedural requirements is essential, and substantive rights under the Income Tax Act cannot be circumvented due to administrative errors or omissions by the Assessing Officer.
For tax practitioners, this is a significant affirmation that any assessment made without following correct reopening procedures and statutory notices will not withstand appellate scrutiny, making procedural vigilance all the more crucial in litigation and advisory practice.
The copy of the order is as under:
