#CBDT Instructions

ITAT Delhi has ruled that an income tax assessment under Section 143(3) is legally invalid if the notice under Section 143(2) was issued by an Assessing Officer without proper pecuniary jurisdiction, as mandated by CBDT Instruction No. 1/2011. This sets a critical precedent for taxpayers and tax officers alike - jurisdictional compliance is not procedural but jurisdictional, and defects here cannot be cured by subsequent actions.

ITAT Delhi quashed an assessment order after the Assessing Officer failed to issue a Section 143(2) notice within the statutory six-month period from the end of the relevant previous year. The ruling reinforces strict compliance with CBDT Instruction No. 1/2011, invalidating assessments based on belated notices.

ITAT Delhi holds that failure to provide physical hearing and delay beyond CBDT timelines vitiates appellate orders, reinforcing audi alteram partem in income tax proceedings.