2002 (5) TMI 207 - AT - Income Tax

Summary

Issues Involved:
1. Validity of assessments framed u/s 144.
2. Validity of service of notices u/s 142(1).
3. Time limitation for issuing notices u/s 142(1) and 143(2).

Summary:

1. Validity of Assessments Framed u/s 144:
The appeals pertain to assessment years 1992-93 to 1995-96, questioning the legality of assessments framed u/s 144. The assessee, a dermatologist, contended that the assessments were invalid as the notices u/s 142(1) were not duly served. The CIT(A) upheld the assessments, stating that the notices were served through affixture in the presence of an Inspector. However, the Tribunal found that the service of notices was not in accordance with the law, as there was no valid service of notice u/s 142(1), making the assessments u/s 144 void ab initio.

2. Validity of Service of Notices u/s 142(1):
The assessee argued that the notices u/s 142(1) were not served personally or by registered post, as required by section 282 of the Income-tax Act, 1961. The Tribunal examined the original records and found that the notices did not bear the signatures of any witnesses, nor was there any report indicating efforts to locate the assessee. The Tribunal concluded that the service by affixture was not valid as it did not comply with the provisions of Order V Rules 17, 19, and 20 of the CPC, and thus, the jurisdiction to assess u/s 144 was not validly assumed.

3. Time Limitation for Issuing Notices u/s 142(1) and 143(2):
The assessee contended that notices u/s 143(2) could not be issued after 31-12-1998, as the returns were filed in December 1997. The Tribunal agreed, stating that the notice u/s 142(1) was issued on 1-3-2000, beyond the permissible period, making it time-barred. The Tribunal held that the issuance of notices u/s 142(1) was barred by the period of limitation, rendering the assessments framed in pursuance of such notices illegal and without jurisdiction.

Conclusion:
The Tribunal set aside the impugned orders of the CIT(A) and quashed the assessments framed u/s 144, allowing the appeals filed by the assessee.