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2017 (5) TMI 162 - AT - Income TaxRectification proceedings carried out u/s. 154 - non-service of rectification notice - Held that:- Issuance of notice or handing over the notice to the dispatch section is not sufficient. Unless and until a notice is served upon the assessee or is returned back by the postal authorities with comments of refuse to receive, it cannot be presumed that notice was served upon the assessee. In the absence of a valid service of notice, all other proceedings would be vitiated for not following the basic principle of natural justice. Only on this count the order of the FAA deserves to be reversed. However, we find that the order passed by the AO u/s. 143(3) of the Act became final after the judgment of the Hon’ble High Court of Bombay wherein it had upheld the order of the Tribunal wherein the revisionary proceedings, initiated by the CIT, u/s. 263 of the Act, were set aside. As a result, the claim made by the assessee for carry forward and set off of unobserved loss/ depreciation had to be allowed. Thus, the AO had wrongly held that no depreciation was available in the AY. 2003-04, that the unabsorbed loss/depreciation was being carried forward from the earlier years. Thus order passed by the FAA has to be reversed. - Decided in favour of assessee.
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