2005 (7) TMI 54 - HC - Income Tax

Reassessment notice - object of giving notice is to inform a person concerned with the matter. If a person receives information/notice by any source and thus had opportunity of defending him, then the mere fact that notice as per statutory provision, or in a particular mode prescribed under law, has not been given, will not vitiate the action/decision for the reason that the purpose of giving notice was achieved and no prejudice is caused to the concerned on this score - writ petitions have no merit and deserve to be dismissed

Summary

Issues:
1. Challenge to assessment orders for multiple assessment years.
2. Interpretation of directions in appellate orders under the Income-tax Act.
3. Opportunity of being heard for separate entities in appellate proceedings.

Analysis:
1. The petitioner, a partnership firm engaged in the sale of goods, challenged assessment orders for the years 1978-79, 1979-80, and 1982-83. The Commissioner of Income-tax (Appeals) noted cross entries between the petitioner and another entity, directing reassessment proceedings under sections 148 and 149 of the Income-tax Act based on section 150/251 provisions.

2. The appellate orders directed the Assessing Officer to initiate reassessment proceedings under section 150 of the Act. The petitioner contended that the use of the term "free" in one order implied no conclusive direction under section 153(3)(iii). However, the court held that the orders must be read as a whole, emphasizing the clear direction for reassessment. The petitioner's argument regarding the term "free" was deemed invalid.

3. The petitioner argued that they were not heard in the appeals concerning different assessment years filed by a separate entity. The court clarified that the opportunity of being heard under Explanation 3 of section 153 was fulfilled as the petitioner was present before the appellate authority, shared common records, and had the chance to present their case. Citing precedent, the court emphasized that the purpose of notice is to inform the concerned party, regardless of the specific mode of notice.

4. The court rejected the petitioner's submissions, concluding that the writ petitions lacked merit and were dismissed without costs.