1977 (6) TMI 37 - AT - Income Tax

Summary

Issues:
- Determination of the date of receipt of notices of demand by the assessee.
- Calculation of the period of limitation for filing appeals.
- Rebuttal of the presumption of service based on postal acknowledgement receipts.
- Consideration of the date when the assessee became aware of the impugned assessments.

Analysis:

The judgment by the Appellate Tribunal ITAT CALCUTTA involved three revisions challenging the dismissal of appeals against assessments for three successive years. The main issue was the determination of the date of receipt of notices of demand by the assessee and the calculation of the period of limitation for filing appeals. The impugned assessments were completed expartes on 29th June, 1968, and notices of demand were sent to the assessee's address. The appellate authority held that the limitation for filing appeals started from the date the notices were received, which was deemed to be 16th July, 1968, based on postal acknowledgement receipts.

The petitioner contended that the notices were not served upon the assessee, and the actual knowledge of the assessments was gained later. The petitioner argued that the period of limitation should start from the date of actual knowledge, which was 17th Sept., 1969. The Tribunal considered evidence presented by the petitioner, including a letter and Certificate of Posting indicating a change of address in Feb., 1968. The Tribunal found that the change of address was duly communicated to the authorities, creating a presumption that the notices did not reach the old address on 16th July, 1968.

The Tribunal further analyzed the postal acknowledgement receipts and the presumption of service based on them. The petitioner argued that the person receiving the notices had no authority to receive them on behalf of the firm, as the firm had already shifted its place of business. The Tribunal accepted the petitioner's contention that the notices were not received at the old address, thus rejecting the presumption of service based on the postal acknowledgements.

Additionally, the Tribunal considered the date when the assessee became aware of the assessments, which was on 17th Sept., 1969, upon receiving notices from the Certificate Officer. The Tribunal calculated the period of limitation from this date, excluding the time spent in obtaining certified copies of the assessment orders, and found that the appeals were filed within the prescribed period. Consequently, the appeals were allowed, the dismissal on grounds of limitation was set aside, and the case was remanded for hearing on merits.

In conclusion, the Tribunal's decision focused on the proper determination of the date of receipt of notices, calculation of the limitation period, rebuttal of the presumption of service, and consideration of the date of actual knowledge of the impugned assessments by the assessee.