ASSTT.COMMR.OF INCOME TAX vs M/S HOTEL BLUE MOON

The Supreme Court held that the issuance of notice under Section 143(2) of the Income Tax Act, 1961 is mandatory for block assessments under Chapter XIV-B when assessing undisclosed income detected during a search under Section 132. The Court disagreed with the Appellate Tribunal's view that non-issuance of such notice is merely a procedural irregularity. The High Court's ruling was affirmed, establishing that the mandatory application of Sections 142 and 143(2) is essential for valid assessments under the Act.