Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

Glosil Leasing and Finance (P) Ltd. Versus Income Tax Officer, Ward 12 (1) , New Delhi

2016 (6) TMI 117 - ITAT DELHI

Reopening of assessment - validity of service of notice u/s 148 which was never served upon the assessee - Held that:- Whenever a reassessment is sought to be made u/s 147, issuing and serving of a valid notice u/s 148 is a mandatory precondition. The onus lies on the Revenue authorities to prove that the notice was served on the assessee within the stipulated period. It is only if the said notice is served on the assessee that the assessing officer would be justified in taking up proceedings ag .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

have been clothed with the jurisdiction to pass the assessment order. The mandate of section 148 is that notice should be served on the assessee, 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. See CIT vs Chetan Gupta [2015 (9) TMI 756 - DELHI HIGH COURT ] - Decided in favour of assessee - ITA No. 4912/Del/2012 - Dated: .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ich reads as under:- Because the Ld. CIT (A) erred in upholding the validity of service of notice u/s 148 which was never served upon the assessee, hence proceedings of reassessment are void ab initio. 2. The main controversy involved in the present appeal relates to the service of notice u/s 148 of the Income Tax Act, 1961 (hereinafter called the Act ). It is seen that the return of income was filed on 9.11.2000 and the same was processed u/s 143(1) of the Act at the returned income. Subsequent .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

om DIT (lnv.), New Delhi vide letters No, DIT (lnv.)-1/2006- 07/AE/1322 & 1536 dated 31.01.2007 and 5.2.2007 respectively that the assessee company is in receipt of accommodation entries totaling to ₹ 5,00,000/-. Accordingly, notice u/s 148 of the Act dated 28,03.2007 was issued and sent through regd. post on 29 03.2007 as well as served personally on the address mentioned in the return of income viz. 82-D, DDA Flats. Jhilmil Colony, Vivek Vihar, Delhi and E-73, Jaswant Marg, Sangam Vi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

that the assessee s latest address is G-11, Palika Palace, Panchkuian Road, New Delhi. Accordingly, a show cause letter dated 12.10.07 was issued and sent to the latest address, fixing the case for hearing on 24.10.07 but the same also remained uncomplied with. A final opportunity was provided to the assessee vide this office letter dated 13.11.2007 thereby fixing the case for hearing on 22.11.07 which was served through affixture at the last known address as per Income Tax return. On 22.11.07 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Act (placed at page 5 of the paper book) was not the correct address of the assessee. The Ld. AR submitted that the said notice has been issued at the address E-73, Jaswant Marg, Sangam Vihar, New Delhi and is alleged to have been received by one Ms. Suman Lata. He submitted that the correct address of the assessee company was G-11, Palika Palace, Panchkuian Road, New Delhi which was very much available on the record of the Department as was evident from the address provided in the Returns of I .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rvice of notice to her, as claimed by the Department, was not a valid service of notice on the assessee company. The Ld. AR relied on the decision of the Hon'ble Delhi High Court in the case of Pr.CIT-1 vs Atlanta Capital Pvt. Ltd. in I.T.A. No. 665/2015 for the proposition that reassessment proceedings without proper service of notice u/s 148 of the Act would be void ab initio and submitted that the entire re-assesssment proceedings in the assessee s case were invalid and liable to be quash .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tted that this kind of defect, if at all, cannot be used to vitiate the entire reassessment proceedings and submitted that the order of the Ld. CIT (A) does not call for any interference. 5. We have heard both the parties and have also perused the records. It is mentioned in the assessment order that notice u/s 148 was issued and served personally on the address mentioned in the Return of Income viz. 82-D, DDA Flats, Jhilmil Colony, Vivek Vihar, New Delhi and E-73, Jaswant Marg, Sangam Vihar, De .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Revenue authorities to prove that the notice was served on the assessee within the stipulated period. It is only if the said notice is served on the assessee that the assessing officer would be justified in taking up proceedings against the assessee. If no notice is issued, or if the notice issued is shown to be invalid, then the proceedings taken up by the assessing 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 asse .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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 n .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version