2007 (10) TMI 60 - HC - Income Tax

Reassessment - Tribunal in his order held that reassessment proceedings is void on the ground that assessee was not served with the notice u/s 147 and 148 of the Act - HC found no error and upheld the order of tribunal

Summary

Issues:
1. Delay condonation application.
2. Appeal under section 260A of the Income-tax Act, 1961.
3. Validity of assessment proceedings due to lack of notice under sections 147 and 148 of the Act.
4. Interpretation of the distinction between "ser of notice" and "issuance of notice."
5. Comparison with legal precedents regarding the validity of assessment orders.

Analysis:

1. The judgment begins with the court condoning the delay in C. M. No. 12713 of 2007 based on the reasons presented in the application, subsequently disposing of the said application.

2. Moving on to the appeal under section 260A of the Income-tax Act, 1961, the Revenue challenges an order passed by the Income-tax Appellate Tribunal relevant to the assessment year 1996-97, where the Tribunal deemed the assessment proceedings void due to the assessee not being served with notices under sections 147 and 148 of the Act.

3. The court delves into the distinction between "ser of notice" and "issuance of notice," referencing the Supreme Court's decision in R. K. Upadhyaya v. Shanabhai P. Patel to emphasize the importance of proper service of notice for the validity of proceedings. It is noted that in the present case, the notice was not sent by registered post or served through any other means on the assessee.

4. Furthermore, the judgment discusses the relevance of the Supreme Court's ruling in CIT v. Jai Prakash Singh, highlighting the significance of serving notices to ensure the validity of assessment orders. The court distinguishes the cited case from the current scenario, where no notice was served on the assessee, reinforcing the argument that the assessment proceedings were indeed void.

5. Ultimately, the court concludes that no substantial question of law arises in the appeal and proceeds to dismiss it, affirming the Tribunal's decision regarding the invalidity of the assessment proceedings due to the lack of proper notice service.