Issuance of notice under Section 143(2) is not mandatory

The Nagpur Bench of the Income Tax Appellate Tribunal partly allowed the appeal of the assessee and held that issuance of notice under Section 143(2) is not mandatory where the assessee has failed to file a return of income in response to notice under Section 148. 

While rejecting the jurisdictional challenge raised by the assessee, the Tribunal restored the issue relating to reconciliation of turnover reflected in Form 26AS, service tax returns and books of account back to the Assessing Officer for fresh adjudication. 

The Tribunal emphasized that turnover discrepancies cannot be conclusively determined merely on the basis of Form 26AS without proper reconciliation and verification.