Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2013 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (1) TMI 131 - HC - Income TaxAssessee in default u/s 220 – Validity of demand notice u/s 156 - Service of demand notice - Initiation of Penalty proceedings before issuing order of penalty – Held that:- Section 156 provides for a vital step to be taken by the A.O. without which the assessee cannot be termed a defaulter. The use of the term 'shall' in section 156 implies that service of demand notice is mandatory before initiating recovery proceedings and constitutes foundation of subsequent recovery proceedings. As no notice of demand has been served upon the petitioner. In the absence of service of a demand notice u/s 156 on the petitioner, prior to initiating recovery proceedings, which is mandatory, the very foundation of the recovery proceedings stands vitiated and as such, the same cannot be sustained. In favour of assessee
|