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2021 (12) TMI 552 - AT - Income TaxValidity of assessment - mandation of service of notice under Section 143(2) - Period of limitation to issue notice - non-service of notice under Section 143(2) on time - HELD THAT:- As notice u/s 143(2) has to be served on the assessee within the statutory time limit if he considers that there is any under-statement of income etc. in the return filed by the assessee. Thus, the Assistant Commissioner of Income Tax, Circle : 1, New Delhi, if he is scrutinizing the return of income then, if he considers necessary to vary the return income then he is suppose to send the notice and it is on the address mentioned in the return of income and that to be within the time prescribed under the first provision. If such a statutory requirement is not complied with, then the resultant effect is that assessment order itself is bad in law. This has been held so by the Hon’ble Jurisdictional High Court in the case of CIT Vs. Hotline International Pvt. Ltd. [2007 (4) TMI 44 - DELHI HIGH COURT] and in CIT V. Lunar Diamonds Ltd. [2005 (3) TMI 33 - DELHI HIGH COURT] The Hon’ble Delhi High Court in the case of CIT Vs. Lunar Diamonds Ltd. (supra) held that the burden is on the revenue to prove that notice was served within time and when assessee has filed an affidavit stating that it had not received the notice, then the burden was on the revenue to prove that notice was served upon the assessee within the prescribed limit. Here the revenue has failed to prove service on the assessee as stated above. Accordingly, we hold that failure to serve the notice on the assessee within the prescribed statutory time limit, assessment proceedings become void ab initio and consequently the assessment order is quashed - Decided in favour of assessee.
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