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2019 (7) TMI 941 - HC - Income TaxService of notice u/s 148 - reopening of assessment - notice dated 15.3.2018 was despatched to the petitioner’s address as contained in her PAN card but returned by the postal department on or around 22.3.2018 with the remark ‘left’ - HELD THAT:- It is also an admitted position that the petitioner had not intimated to the Department about her change of address. After receiving the envelope containing the notice from the postal department, till 31.3.2018 which was the last date for service of such notice, the department took no further steps. Since the delivery of the notice could not be made at the address of the assessee available in PAN database, by virtue of the further proviso to sub-rule (2) of Rule 127, the communication had to be delivered at the address as available with the banking company. It is undisputed that the Department had access to the petitioner’s bank account. It is precisely from the activities in such bank account that the department had gathered the material prima facie believing that the income chargeable to tax had escaped assessment. In terms of Rule 127 and in particular, sub-rule (2) therefore, having regard to the further proviso therein, the Department had to deliver the notice of reassessment at the petitioner’s address given by her to the bank where her account was maintained No such steps were taken. Service of notice, therefore, was not complete. In absence of service of notice before the last date envisaged under section 149 for such purpose, the AO could not have proceeded further with the reassessment proceedings. His consequential steps of attempting to serve the notices of scrutiny assessment were of no consequence. Reopening of assessment was invalid. No valid assessment thereon could have been framed. - Decided in favour of assessee.
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