In Brief
A search and seizure operation under Section 132 of the Income Tax Act, 1961 led to an assessment of the respondent assessee. The key procedural issue was whether notice under Section 143(2) of the Act is mandatory before making assessment under Section 143(3). The respondent challenged the assessment on the ground that no notice was ever issued. The Court held that Section 143(2) notice is a mandatory prerequisite for assessment, including block assessments. Section 292BB, which deems notice valid if the assessee participates, applies only to cure defects in service of notice, not its complete absence. Since no notice was issued here, the Court upheld the High Court and Tribunal decisions quashing the assessment. The appeals by the Revenue were dismissed.
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