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2008 (5) TMI 437 - HC - Income TaxNotice under section 148 were not cured by section 292B of the Income-tax Act, 1961 - assessee who was already dead even on the date of issue of notice - Even the name of the deceased assessee was not correctly mentioned in the notice - notice was addressed to Ganga Prasad Jaiswal while the correct name of the assessee was Ganga Ram Jaiswal - Held that - answered in favour of the assessee and against the Department
Issues:
Validity of notice under section 148 of the Income-tax Act, 1961 and applicability of section 292B for curing defects. Analysis: The substantial question of law in this Income-tax Reference pertains to whether defects in a notice under section 148 of the Income-tax Act, 1961 can be cured by section 292B. The High Court referred to the case of CIT v. Shital Prasad Kharag Prasad [2006] 280 ITR 541, where it was established that the notice under section 148 is jurisdictional and not curable under section 292B if not served correctly. In the present case, the notice was issued to an assessee who had already passed away before the notice was even sent. The notice was addressed incorrectly, and not served on the legal representatives of the deceased. The High Court highlighted that even the name of the deceased assessee was inaccurately mentioned in the notice, which was a crucial error. The respondents relied on a decision from the Calcutta High Court in the case of Mulchand Rampuria v. ITO [2001] 252 ITR 758. However, the High Court disagreed with the reasoning of the Calcutta High Court and instead supported the Division Bench's reasoning in the case of CIT v. Shital Prasad Kharag Prasad [2006] 280 ITR 541. The High Court emphasized the importance of adhering to the correct procedures and serving notices accurately, especially in cases involving deceased individuals. Consequently, the High Court ruled in favor of the assessee and against the Department, emphasizing the significance of proper service of notices under the Income-tax Act to maintain jurisdictional integrity and fairness in legal proceedings.
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