TMI Blog2016 (5) TMI 1020X X X X Extracts X X X X X X X X Extracts X X X X ..... g officer would be illegal and void. In this case, it is very much apparent that the notice u/s 148 had not been served on the assessee within the stipulated period. The Assessing Officer can assume jurisdiction to complete the assessment only after valid and legal service of the notice in accordance with law. Unless such notice has duly been served, the Assessing Officer cannot be said to have been clothed with the jurisdiction to pass the assessment order. Thus in the present case we hold that in absence of valid service of notice u/s 148 of the Act within the stipulated period, the reassessment proceedings are void ab initio - Decided in favour of assessee - ITA No. 818/Del/2014 - - - Dated:- 29-4-2016 - Shri N. K. Saini, Accounta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rrant reassessment. The assessee s ground of appeal on the issue of validity of the reassessment proceedings based on reasons recorded was also dismissed by the Ld. CIT (A). The assessee also challenged the impugned additions of ₹ 20 lacs on merits but these grounds were also dismissed and the addition was confirmed. 3. Now, in this appeal before us, the assessee has raised as many as 11 grounds of appeal, however, we are proceeding to adjudicate ground no. 3 first which is germane to the entire reassessment proceedings and depending on the outcome of the fate of this ground of appeal, we shall proceed to adjudicate the remaining grounds as required. Ground No. 3 reads as under:- On the facts and circumstances of the case, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 28.03.2011, but the same was sent by speed post at the address S - 524, Vikas Marg, Shakarpur, Delhi, which has also been confirmed by the Ld. CIT (A). The address of the assessee company, however, as on the said date was changed to C - 52, Vivek Vihar - I, New Delhi - 110095. All the correspondence made by the AO with the assessee company was at the said address only, as is evident from the various notices issued during the course of assessment proceedings. The Ld AR also submitted that the Ld. CIT (A) has held in Para 5.3 of her order that as per the records, the address of the assessee was S - 524, Vikas Marg, Shakarpur, Delhi. He submitted that in this regard it is pertinent to refer to the order passed by the CIT (A) in assessee s o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d vide order sheet entry dated 21.09.2011, a copy of the notice u/s 148 issued on 28.03.2011 was handed over to the representative of the assessee Mr. Manoj Sharma. Thus, the assessee had, in the very preliminary stage, raised the objection of non-service of the statutory notice within the statutory time frame of six years. The Ld. CIT (A) has examined the issue in para 5.1 to 5.3 of the impugned order as under:- 5.1 As per section 149 (1) No notice u/s 148 shall be issued for the relevant assessment year:- (a) If four years have elapsed from the end of the relevant assessment year, unless the case falls under clause (b); (b) If four years, but not more than she years, have elapsed from the end of the relevant assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... records and seen that notice u/s 148 was issued on 28.03.2011 and was sent by speed post. As per the records the address of the appellant was S-524, Vikas Marg, Shakarpur Delhi. The AO has stated the notice was served. The notice was not was returned back. It is therefore presumed that it was served. If the appellant had changed its address, it was the duty of the appellant to give information to the Department. The grounds of appeal are therefore ruled against the appellant as the notice was issued on time and in compliance with law. 8. Thus, the Ld. CIT(A) has, on one hand, concluded that issued tantamount to served and, on the other hand, has raised a presumption against the assessee that since the notice was sent through speed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee, by prescribed mode of service, which has undeniably not been carried out in this case. In the absence of a valid service of notice u/s 148, the reassessment order passed by the Assessing Officer is illegal and void ab initio. The Hon'ble Delhi High Court in CIT vs Chetan Gupta (I.T.A. No. 72 of 2014) has discussed the entire law and summarised the legal position in its judgement dated 15th September, 2015 as under:- (i) Under Section 148 of the Act, the issue of notice to the Assessee and service of such notice upon the Assessee are jurisdictional requirements that must be mandatorily complied with. They are not mere procedural requirements. (ii) For the AO to exercise jurisdiction to reopen an assessment, notice und ..... X X X X Extracts X X X X X X X X Extracts X X X X
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