148 Last Known Address All HC 9
148 Last Known Address All HC 9
148 Last Known Address All HC 9
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2. Whether the Hon'ble ITAT was legally correct in holding that the
notice u/s 148 was not issued on the last known address of the
assesee ignoring that there exists minor mistake/difference in the
address i.e. there should have been 49 Old Vijay Nagar colony in
place of 49, North Vijay Nagar Colony and such minor mistake cannot
make the notice invalid as per the provision of Section 292 BB of IT
Act 1961?
3. Whether the Hon'ble ITAT was legally correct in holding that unless
a particular person is authorized to receive a notice as his/assesee's
agent, any notice served upon and received by him would not bind the
assessee ignoring the Rule of consistency in assesee's case that
factually the notice u/s 148 was served on the person/employee of the
assessee as per the past practice on the direction of the assessee i.e.
a doctor/professional of well repute who is well known among the
citizens of Agra and surrounding districts and also ignoring the position
of law that direction/instruction can be given by a person/assessee
either orally or in writing?
The AO issued notice to the assessee u/s 148 of the Act.
The assessee did not appear in the proceedings. The AO
considered the service to be sufficient thereafter made
various additions. The CIT (A) held that notice was sent at
the wrong address. Sri Mahesh on whom the notice was
allegedly served was not an employee of the assessee. The
Tribunal found that the notice sent by speed post was on
wrong address whereas the assessee's correct address was
49 Old Vijay Nagar Colony, Agra and not of 49 North Vijay
Nagar Colony Agra, and thus presumption of service of
notice by speed post as well as Section 292 BB will not be
attracted.
"Here we are concerned only with the valid service of a notice issued
u/s 148 of the Act. The invalidity of the notice issued under Section
148 renders the entire reaassessment proceedings as null and void
whereas non service of a notice issued u/s 148 renders the
assessment framed as bad in law. in this case there is no doubt that
notice u/s 148 was served on an incorrect address and against which
the explanation of the department is that the address of the assessee
is well known and the Inspector of the department had gone to a
correct address to serve this notice, is not tenable in the eyes of the
law when the record reveals that the notice was never served upon the
assessee. A notice issued u/s 142 (1) was sent back by Shri Alik
Farsaiya, the legal consultant on the reasoning that the notice did not
belong to any of his clients. Anotehr notice, allegedly, sent and
received by Shri Mahesh, the alleged employee of Dr. Ajay Prakash,
when it is found that he was not an employee of the assessee, cannot
be said to be duly served. The entire records were produced before
the ld. CIT (A) and he found the above contention of the assessee to
be correct. Unless a particular person is authorized to receive a notice
as his agent, any notice served or received by him would not bind the
assessee. In this case, nobody participated in the re-assessment
proceedings and the objection regarding the service of notice was
taken before ld. AO himself. Therefore newly inserted provisions of
Section 292-BB would also not help the department. This is trite law
that unless a valid notice is served upon the assessee any
reassessment framed has to be quashed. In this regard, the binding
decision of jurisdictional high court in the case of Madan Lal Agrawal
Vs. CIT 144 ITR 745 (Ald), inter alia, is relevant and can be cited as
relevant decision, being that of the jurisdictional High Court. The ld. AO
has refrained from sending his comments even in his reply in remand
report despite the fact it was sent to him with a specific direction by
the ld. CIT (A) and therefore it is confirmed on record that the AO had
nothing to say in the matter. Since the notice was not issued on the
known address of the assessee and there being no valid evidence of
proper service of this notice, the impugned order passed by the ld. AO
becomes bad in laws. Therefore, the ld. CIT (A) has correctly quashed
the impugned assessment order. Hence, we cannot allow the appeal
of the Revenue and the same is hereby dismissed."