TMI Blog2021 (7) TMI 840X X X X Extracts X X X X X X X X Extracts X X X X ..... mplated under the Act as well as the directives issued by the Hon'ble Supreme Court of India in the case of GKN Driveshaft (India) Ltd.. [ 2002 (11) TMI 7 - SUPREME COURT] and such an exercise is directed to be done as expeditiously as possible. - W.P.Nos.10817 and 10818 of 2018 And W.M.P.Nos.12757 and 12758 of 2018 - - - Dated:- 30-6-2021 - Honourable Mr.Justice S.M.Subramaniam For the Petitioners : Mr.Suhrith Parthasarathy For the Respondent : Mrs.Hema Muralikrishnan Senior Standing Counsel for Income Tax COMMON ORDER The notice issued under Section 148 of the Income Tax Act, 1961, in proceedings dated 31.03.2018, as well as the corrigendum to notice dated 31.03.2018, are under challenge in the present writ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er chargeable to tax for the Assessment Year 2010-11 has escaped assessment. If that is so, even the period of limitation expired on 31.03.2017 itself. However, the corrigendum to notice states that it was erroneously mentioned as 2010-11 and the reopening of the assessment is made for the assessment year 2011-12. Thus, the very initiation of proceedings under Section 147 of the Act and issuance of notice under Section 148 of the Act are beyond the period of limitation, and thus, the respondent has no jurisdiction to issue notice, and therefore, they are liable to be set aside. 4.The learned counsel for the writ petitioner relied on the judgment of the Gujarat High Court in the case of Kanubhai M Patel Huf Vs. Hiren Bhat or his Success ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 148 of the Act and serving of the notice to the assessee concerned. The issuance of notice is one aspect and serving of notice is another aspect. Section 147/148 stipulates issuance of notice and not serving of notice. Thus, the principles to be adopted in the present case squarely falls within the parameters of the judgment delivered by this Court in W.P. Nos.13425, 13431, 13432 and 11399 of 2018 , dated 26.04.2021, which are extracted hereunder: 15.This Court has to consider the relevant provisions of the Income Tax Act. Section 147 deals with 'Income Escaping Assessment' . Once the Assessing Officer 'has reason to believe' that any income chargeable to tax has escaped assessment for any assessment, he is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ?In determining income chargeable to tax which has escaped assessment for the purposes of this sub~section, the provisions of Explanation 2 of section 147 shall apply as they apply for the purposes of that section. (2) The provisions of sub~section (1) as to the issue of notice shall be subject to the provisions of section 151. (3) If the person on whom a notice under section 148 is to be served is a person treated as the agent of a non~resident under section 163 and the assessment, reassessment or recomputation to be made in pursuance of the notice is to be made on him as the agent of such non~resident, the notice shall not be issued after the expiry of a period of six years from the end of the relevant assessment year. Expl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icient that the actions are initiated. Thereafter, delivery or receipt of the order is irrelevant as far as the requirements contemplated under the provisions of the Income Tax Act is concerned. Thus, for the purpose of issuance of notice under Section 149 of the Income Tax Act, it is sufficient to establish that if such an order/notice is signed by the Authority Competent and if this fact is established, then it is to be construed that the provisions of the Act are complied with. 24. Let us now examine certain circumstances where there is a delay in delivering the goods either by the Process Server or by the Postal Department or on account of sudden declaration of holidays or due to public holidays etc. Various circumstances and situa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the notice has been issued in compliance with the provisions of Section 149 of the Income Tax Act. Make it more clear that issue of notice is the requirement contemplated under the provisions and the service would be the next step and the same would have been done even after the last date and that will not change the character of issue of notice as completed within the meaning of Section 149 of the Income Tax Act. The case of the petitioner would be strong if the provision contemplates ?service of notice? to the assessee, and such contemplation is traceable in some other provisions of the Act, for example Section 281 of the Income Tax Act. ... 28. 'Issue of Notice' by the Competent Authority is contemplated under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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