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2016 (3) TMI 1199 - AT - Income TaxValidity of assessment proceedings - absence of proper service of notice issued u/s. 143(2)- service of notice through substituted manner - Held that:- There is no mention in the Panchnama that enquiries were made from neighbors of the assessee in respect of his whereabouts. The reasons for joining the witness from far of location and whether the witnesses were able to identify the name and address of the assessee, the reasons for not joining the witness from local area are also not specified. Thus, raising a cloud of suspicion on the genuineness of service even through affixation. Order V of Rule 20 clearly states that the court shall order for substitute service if it is satisfied that there is reason to believe that the defendant is purposely avoiding service or the summons could not be served or there are any special reasons that summons could not be served in ordinary way. In the present case we find that no such satisfaction has been recorded by the Assessing Officer before directing service of notice through substituted manner. In the present case, since, the notice u/s. 143(2) has not been validly served on the assessee the proceedings arising there from are vitiated. Thus, in view of the provisions of the Act we are of considered view that proper service of notice u/s. 143(2) is mandatory. The Department cannot take the shelter of section 292BB where there is no proper service of notice u/s. 143(2) and the assessee has participated in assessment proceedings. Non-service of notice u/s. 143(2) is fatal to the assessment proceedings. In the absence of proper and valid service of notice, the proceedings arising therefrom are null and void and are thus liable to be annulled. - Decided in favour of assessee
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