2006 (4) TMI 523 - AT - Income Tax

Summary

Issues:
- Challenge to service of notice issued under section 148
- Denial of deduction under section 80-IA

Analysis:
Challenge to Service of Notice under Section 148:
The assessee raised objections regarding the service of notice under section 148, claiming it was not served upon him. The Assessing Officer issued the notice on 30-3-2001, allegedly served on 28-4-2001. The assessee contended that the signature on the notice did not match that of the Managing Director. The CIT(A) upheld the service of notice, citing precedents. The authorized representative argued that the notice was fabricated to cover the delay in issuance, questioning the validity of the service. The Departmental Representative defended the service, presenting an affidavit from the notice server. The Tribunal found no evidence of proper issuance or service of the notice, concluding the service was invalid, rendering the assessment proceedings illegal. Citing case laws and statutory requirements, the Tribunal allowed the appeal on improper service of notice.

Denial of Deduction under Section 80-IA:
The Departmental Representative referred to a previous judgment against the assessee on a similar issue. The Tribunal noted the precedent and dismissed the appeal on merit regarding the denial of deduction under section 80-IA. The Tribunal upheld the decision against the assessee based on the previous ruling.

In conclusion, the appeal was allowed partly, with the Tribunal ruling in favor of the assessee on the challenge to the service of notice under section 148 but dismissing the appeal on the denial of deduction under section 80-IA.