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TMI Blog2019 (10) TMI 142X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessment Year (A.Y.) 2007-08 and 2008-09. 2. In this case, the assessment was completed u/s 144 r.w.s. 147 by an order dated 20.03.2015. For the A.Y. 2007-08, the Assessing Officer (AO) issued the notice u/s 148 on 25.03.2014 and served the notice by affixture in the last known address on 30.03.2014. As there was no compliance to the notice issued u/s 148, subsequently, the AO issued the notice u/s 142(1) along with a letter requiring the assessee to furnish the return in the prescribed format for the A.Y.2007-08. Since there was no response, the AO completed the assessment u/s 144 r.w.s.147 of the Act on 20.03.2015. 3. Brief facts of the case are that it has come to the notice of the AO that the assessee has sold the property admea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .No.614/2005, dt.15.02.2005) Rs. 2,00,000 (B) Total short term capital gain (A)-(B) Rs. 7,35,000 Accordingly, the AO completed the assessment on total income of Rs. 7,35,000/-. 3.1. Similarly for the A.Y.2008-09 also , the AO served the notice u/s 148 by affixture as per the last known address. For the A.Y.2008-09, the assessee has sold one property admeasuring 333.33 sq.yds together with built up area of 750 sq.ft. RCC house situated at D.No.4-46-9/8, Peda Waltair, Visakhapatnam to Shri Andhavarapu Vekata Nagendra Prasad, D.No.16-3-111, Gujarathipeta, Srikakulam for a consideration of Rs. 14,36,320/- vide registered sale deed bearing No.4236/2007 dated 19.09.2007. The market value of the said property was determined at Rs. 23,54,478 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... well as on technical issues. With regard to non service of notice and consequent validity of assessment framed u/s 148, the Ld.CIT(A) held that the notice u/s 148 is validly issued, hence, dismissed the appeal of the assessee on this ground. 4.1. With regard to the assessment for the A.Y.2008-09 also, the Ld.CIT(A) held that the AO has rightly served the notice by affixture at the last known address, accordingly dismissed the appeal of the assessee on this ground. 5. The common ground for the A.Y.2007-08 and 2008-09 is the notice issued u/s 148 is not in accordance with law which renders the assessment void ab initio. During the appeal hearing, the Ld.AR argued that the AO has not served the notice u/s 148 to the assessee for both the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e instant case, the contention of the assessee is that the notices u/s 148 / 142(1) were not served on the assessee, hence the assessments made u/s 147 are invalid. The department has contended that the whereabouts of the assessee were not known and the assessee did not respond to the letters issued by the department, hence, notices were served by affixture in the last known address, therefore, contended that the notices issued u/s 148 were validly served by affixture. For a query from the Bench, the Ld.DR furnished the report of the inspectors stating that the notices issued u/s 148 were served by affixture. The department could not place any evidence to show that the notices were issued to the assessee's address i.e. prior to the service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice either by post or through notice server. Though there was a report of inspector having served the notice by affixture, there was no panchnama drawn by inspector for service of notice by affixture, specifying the place which is being witnessed by independent witnesses. The notices u/s 148 bear the signature of two witnesses without the details of names and addresses. There was no endorsement on the notices having served the notices by affixture. Without the proper endorsement having served the notice by affixture in the presence of local person identifying place of the assessee, the same cannot be held as valid service. Similarly though the AO has stated to have served the notice u/s 142(1) also by affixture, no evidence was brought on r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the department has not made proper efforts or the enquiries to locate the assessee. From the above, it is established that the department did not make proper service of the notice as per the procedure laid down in the Code of Civil Procedure.
Since there was no valid service of notice, we hold that the assessment proceedings are invalid and the department has failed to prove the valid service of notice on the assessee before embarking upon the proceedings.
Therefore, we have no option except to quash the entire proceedings.
Accordingly, we quash the assessment proceedings and allow the appeals of the assessee.
8. In the result, appeals of the assessee are allowed.
Order pronounced in the open court on 30th September, 2019 X X X X Extracts X X X X X X X X Extracts X X X X
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