TMI Blog2018 (8) TMI 927X X X X Extracts X X X X X X X X Extracts X X X X ..... de in the bank account as no correspondence was required to be made with the bank as the assessee was holding a Saving Account. Held that:- when the Department had correct address of the assessee, sending notice at incorrect address and then presumption drawn of service of notice is wholly erroneous. We find that the presumption drawn by the Tribunal on the ground that since notice was not received back unserved, it would be deemed to be service of notice, cannot be sustained. - Decided in favor of assessee. - Income Tax Appeal No. 413 of 2011 - - - Dated:- 14-8-2018 - Hon'ble Bharati Sapru And Hon'ble Dinesh Kumar Singh, JJ. For the Appellant : Swapnil Kumar For the Respondent : C.S.C., Income Tax,Manish Goyal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee's Bank Account No.10309 in Canara Bank (SSI Branch), Sanjay Place, Agra. 4. The said notice was issued after recording reasons that the assessee had obtained or credited an amount of ₹ 5,28,183.00 and ₹ 5,79,424.00 from M/s Essar Pee Advertising, Delhi who were providing entries to the beneficiaries by showing that the transactions made by them in purchase and sale of shares of certain companies and gifts from certain persons, which in fact never took place. The assessee was alleged to be one of the beneficiaries, figuring in the list supplied by the Investigation Wing, Agra. Since the transactions of share trading were found to be bogus and, therefore, entire amount claimed to have been received by the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the ground that the notice under Section 148 of the Act was never served upon the assessee. 8. The C.I.T.(A) held that notice under Section 148 of the Act was issued by I.T.O.-1(1), Agra on 28th March, 2006 to the assessee at 109, North Idgah Colony, Agra. The A.C.I.T., Circle-1, Agra transferred the case records to I.T.O.-1(1), Agra on 8th May, 2006. Subsequently, the case was assigned to ITO-1(3), Agra, who issued a requisition under Section 133(6) of the Act on 12th November, 2006 to M/s Essar Pee Advertising Company calling for various information in respect of the share transactions. The A.O. also issued a requisition under Section 133 (6) of the Act on 9th November, 2006 to the Manager, Canara Bank (SSI Branch), Sanjay Place, Agr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt, detailed herein-above, as the assessee's unexplained income from undisclosed sources. 12. The assessee preferred an appeal and contended that notice under Section 148 of the Act issued by the A.C.I.T., Circle -1, Agra as also the I.T.O.-1(1), Agra was never served on him and the addition made under Section 68 of the Act were not tenable since the assessee did not maintain regular books of account and filed his return of income under Section 44AF of the Act being a retail trader of shoe soles. 13. On behalf of the Department, it was contended that notice under Section 148 was duly sent by speed post which was not returned back by the postal authority with the remarks not found or not served or refused . The notice was served o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt. 15. In compliance of the directions under Section 250(4) of the Act, vide letter dated 4th October, 2007 the A.O. furnished a report dated 27th May, 2009 which is reproduced herein-above:- 1. The present owner/occupant of the premises at 109, North Idgah Colony are Shri Sanjay Batra Shri Vijay Batra, both brothers. 2. As directed the inspector was deputed to make enquiries from the present owners but they refused to cooperate him stating that they are not relative of Shri Suresh Kumar Sheetlani from whose father Shri Nanak Ram they have purchased the property. A summon issued on 15.10.2007 to Shri Sanjay Batra was also not complied and as far as I remember counsel of Shri Sanjay Batra, Shri Narendra Singh had appeared wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2007 for the supply of the copies vide para 3, as the file was received from ITO-1(1), Agra as stated above, the ITO-1(1) and Dy. CIT, Circle-1, Agra is being requested to make compliance. 16. On the basis of the aforesaid report, the CIT (A) held that notice under Section 148 of the Act was not served upon the assessee. The notice sent under Section 148 of the Act was sent at the wrong address and, therefore, the service of notice could not be deemed to have been effected on the assessee. The service of notice under Section 148(A) is sine qua non and in absence thereof, the assessment proceedings concluded under Section 147 of the Act were rendered invalid. The CIT (A) allowed the appeal and quashed the assessment order. 17. The De ..... X X X X Extracts X X X X X X X X Extracts X X X X
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