TMI Blog2016 (7) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... available on record and also perused the assessment record produced by the ld. DR. Both the appeals are decided as under. ITA 335/2015 3. This appeal by revenue has been filed on the following grounds : 1. The order of the learned CIT (A) is erroneous contrary to facts law. 2. The Ld. CIT(A) has erred in accepting the arguments of the assessee that the Assessment proceedings were not in his knowledge as this is entirely unbelievable and the assessee is trying to hoodwink the law by simply denying the knowledge of proceedings u/s 147 in his case. 3. The Ld. CIT(A) has erred in accepting the assessee's story by not appreciating the efforts made by the AO in making the proper service of notice u/s 148 and more seriously the fact that the assessee himself vide letter dated 24.01.2014 received by the AO on 27.01.20l4 has stated his address as H.No 1626, Sector 18-D, Chandigarh , the very address at which the initial notice u/s 148 were served. 4. It is prayed that the order of the Ld. CIT(A) be cancelled and that of the assessing officer may be restored. 4. The assessee filed original return of income on 11.01.2007. Later on, case was reopened ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6.03.2013, but the fact remains that the appellant was not residing at the address mentioned in the impugned notice u/s 148 and the appellant had never received notice u/s 148. As per report dated 14.03.2014 of the inspector, lying on assessment folder, the appellant is residing at #1627, Sector- 18-D, Chandigarh and not at #1626, Sector- 18-D, Chandigarh. It is, therefore, evident that the reassessment was initiated on the basis of notice u/s 148, which was never served on the appellant and so the reassessment made as a consequence of this notice is null and void. Hence, reassessment made is hereby annulled. As the reassessment order has been annulled, the other grounds of appeal become infructuous. 6. In the result, the appeal is allowed. 7. We have considered rival submissions. The ld. DR furnished copy of the return filed by assessee, copy of notice under section 148 dated 22.03.2013, copy of service of the notice by affixture dated 26.03.2013 and copy of the letter of assessee dated 24.01.2014 filed in response to notice under section 142(1) dated 17.01.2014. The ld. DR contended that assessee has filed letter dated 24.01.2014 in which assessee has given his address a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... requiring him to furnish within such period, as may be specified in the notice, a return of his income or the income of any other person in respect of which he is assessable under this Act during the previous year corresponding to the relevant assessment year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed; and the provisions of this Act shall, so far as may be, apply accordingly as if such return were a return required to be furnished under section 139] [Provided that in a case- (a) where a return has been furnished during the period commencing on the 1st day of October, 1991 and ending on the 30th day of September, 2005 in response to a notice served under this section, and (b) subsequently a notice has been served under sub-section (2) of section 143 after the expiry of twelve months specified in the proviso to sub-section (2) of section 143, as it stood immediately before the amendment of said sub-section by the Finance Act, 2002 (20 of 2002) but before the expiry of the time limit for making the assessment, re-assessment or recomputation as specified in sub- section (2) of section 153, e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on a person can be effected by serving the notice on his agent who has been specifically empowered or authorized to receive the notice in writing by that person. The manager on whom the notice had been served in this case had no written authority from the partners to receive the notices on behalf of the firm. Consequently, the notice under s. 148 had not been validly served on the assessee and the re-assessment made under s. 147 cannot be held to be valid. 10. In this judgement, Hon'ble Madras High Court has referred to the decision of Hon'ble Supreme Court in the case of N. Narayana Chetty Vs ITO 35 ITR 388 in which it was held by the Hon'ble Supreme Court that; The notice prescribed by Section 34 of the Indian Income Tax Act, 1992, for the purpose of initiating re- assessment proceedings is not a mere procedural requirement, that the service of the notice on the assessee is a condition precedent to the validity of any re-assessment made under this Section and that if no notice is issued or if the notice issued is shown to be invalid, then the proceedings taken by the Assessing Officer without a notice or in pursuance of an invalid notice would be illegal a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of income, originally filed by assessee, the assessee has given his address to be house No. 1627, Sector 18-D, Chandigarh. Therefore, Assessing Officer has recorded both wrong facts in the reasons recorded for re-assessment i.e. wrong address of the assessee as well as that no return of income have been filed. The Assessing Officer, thereafter, issued notice under section 148 on assessee on 22.03.2013 mentioning in the said notice the address of assessee at house No. 1626, Sector 18-D, Chandigarh where the assessee was not residing. The said notice is stated to have been served by affixture at wrong address on 26.03.2013. The Assessing Officer, thereafter, completed re-assessment on 27.03.2014 and correctly mentioned the address of the assessee in the re-assessment order as House No. 1627, Sector 18-D Chandigarh. Therefore, the Assessing Officer did not attempt to verify the address of the assessee from his own record as well as did not mention the correct address in the notice under section 148 of the Income Tax Act. Since assessee was not residing at the given address, as given in the notice under section 148 of the Act as House No. 1626, Sector 18-D Chandigarh, therefore, there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issued and served upon assessee. Therefore, this decision would not support case of the Revenue. The other decision relied upon by ld. DR in the case of V.R.A. Cotton Mills Pvt. Ltd. (supra) relates to the service of the notice under section 143(2) of the Income Tax Act and another decision in the case of Estate of Late Rangalal Jojodia (supra) deals with service upon the legal heirs and is not with reference to the proceedings under section 148 of the Act. The decision relied upon by ld. DR, thus, would not support the case of the revenue. 13. Considering the above discussion in the light of the findings of fact recorded by the ld. CIT(Appeals),it is clear that notice under section 148 of the Act dated 22.03.2013 have not been served upon assessee, therefore, the re-assessment made under section 147/148 cannot be held to be valid because the same is bad in law. There is no question of service by affixture by the Inspector at the wrong address upon assessee. The ld. CIT(Appeals), therefore, in proper perspective correctly set aside the re-assessment proceedings. We do not find any justification to interfere with the order of the ld. CIT(Appeals) in allowing the appeal of the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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