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2019 (3) TMI 1927 - AT - Income TaxReopening of assessment u/s 147 - No proper and valid service of notice issued u/s 148 - notice was served by way of affixture - mandation of serving officer to show that all due and reasonable diligent efforts were made to serve the assessee/defendant with the notice - whether the notice affixed on the door of the assessee on 31.3.2015 on the last day of limitation for service of notice under the provisions of section 151 of the Act is a valid service specially when no efforts were made by the revenue to serve the notice through the normal course and straightway affixed the notice? - HELD THAT:- The order V of CPC Rule 17 provides service of notice by way of affixture on the defendant on his residence or place of business on the outer door if defendant refuses to accept the service or can not be found. The serving officer can affix the notice on the out door of the house/residence where the defendant ordinarily resides or carries on business. The serving officer then report the circumstances under which the notice was affixed and name and address of the person by whom the house/place of business was identified and in whose presence the copy of the notice was affixed. As is clear from the above that the inspector income tax stated in his report that only upon finding the door closed he has no option but to make affixture of the notice on the out door of the assessee. There is no doubt that the AO has not made any due effort or diligence to serve the notice and affixed the same on the date of issuance of the said notice. There is nothing on records that the assessee was hiding or avoiding the service of notice and there is also no evidence on records that the service could not be made through ordinary ways/means. In this the case the ordinary means of service of notice were not used or exhausted and the service was made directly through affixture at the last minutes on 31.3.2015 to avoid limitation expiring on 31.3.2015. Thus there is merit and force in the arguments of the ld AR that there is no valid service of notice and the proceedings are null and void as the notice issued u/s 148 was not served upon the assessee. In the Hon’ble Delhi High Court in the case of CIT Vs Hotline International (P) Ltd [2007 (4) TMI 44 - DELHI HIGH COURT] held has that where the serving officer does not make any efforts to locate the assessee, the service by affixture in invalid and re-assessment proceedings are bad in law. The background facts in this case are that the serving officer visited the office of the assessee to serve the notice and security guard informed that the office is closed for holi festival. The serving officer made the affixture which was held to be invalid. Service of notice issued u/s 148 dated 31.3.2015 through affixture on 31.3.2015 is not a valid service and accordingly the re-assessment proceedings and consequent order are quashed. - Decided in favour of assessee.
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