9911796707
TMI Blog2012 (4) TMI 353X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowed as in para 4 above 10,66,622 Expenses estimated on earning Dividend income 30,000 TDS on Society charges amounting To Rs. 1225/- was not paid in time 1,225 13,74,861 The assessee filed appeal before CIT(A) challenging aforesaid additions. Before CIT(A) the assessee raised a ground that the order of assessment is not valid in law for the reason that the AO did not sign the same. On this objection the CIT(A) called for a remand report from the AO. In the remand report the AO has stated as follows: "In this case, the assessment u/s. 143(3) of the I.T. Act was completed on 10.12.2007. The assessment order u/s. 143(3) of the I.T. Act, Income-tax Computation Form (ITNS 150), Demand Notice u/s. 156 of the IT. Act and Penalty Notice u/s.271(1 )(c) of the I.T. Act were dispatched to the assessee viz. M/s. Vijay Corporation on 18/12/2007 by Speed Post but was returned by the Postal Authorities on 27.12.2007 with the remark 'left' / 'closed'. As such, the same was served on the assessee by hand on 27.12.2007. The acknowledgement is on record. Also, at the time of assessment proceedings, the assessee/ representative has attended the hearing and discussed the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mand notice issued and served if the assessment order remained to be unsigned it is merely a procedural irregularity curable under the provisions of section 292B. It is the service of demand notice which is crucial; such failure would invalidate proceedings as held in Mohan Wahi & Ors v. CIT 248 ITR 799. Conversely where there is proper service of demand notice, as in the case in the present appeal the assessment cannot be held invalid. The provisions of section 292B ensure that on technical ground the proceedings is not rendered invalid. As is evidenced from the Assessing Officer's report dated 26/08/2009, the assessment has been in substance and effect in conformity with and according to the intent and purposes of the I.T. Act. At the time of assessment proceedings, the assessee representative has attended the hearing and discussed the case, which is evidenced from recording and signature of the Assessee/representative on the note sheet. In this case, the assessee's only contention is that the assessment order is not signed. But the notice of demand, computation form etc attached alongwith the assessment order signed and carried proper stamp and seal of the AO. This makes it clea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nclusions were: (i) that there was no signed assessment order; (ii) that even if a demand notice was taken to exist in this case, the assessment was invalid as, in spite of there being a positive demand thereunder, it had not been served on the assessee; (iii) that if there was no assessment on the Hindu undivided family (for 1955-56), there was no need on the part of the assessee to come forward with an application under section 25A of the Indian Income-tax Act, 1922, as that section contemplated an application being made thereunder only when there was already an assessment on the Hindu undivided family. The Tribunal held that the assessment in the status of a Hindu undivided family when the family had ceased to exist had to be set aside as it was not valid. On a reference, the High Court held that the findings of the Tribunal were perverse as the records showed that P had received a number of notices on behalf of the assessee on various dates. It held that there was a valid assessment on the Hindu undivided family for 1955-56. On appeal to the Supreme Court held that the High Court had not given due importance to the fact that upon the record produced by the Revenue before the Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt in Kalyankumar Ray v. CIT [1991] 191 ITR 634. It said (page 638) : "If, therefore, the Income-tax Officer first draws up an order assessing the total income and indicating the adjustments to be made, directs the office to compute the tax payable on that basis and then approves of it, either immediately or some time later, no fault can be found with the process, though it is only when both the computation sheets are signed or initialled by the Income-tax Officer that the process described in section 143(3) will be complete. . . . All these decisions emphasise that all that is needed is that there must be some writing initialled or signed by the Income-tax Officer before the period of limitation prescribed for completion of the assessment has expired in which the tax payable is determined and not that the form usually styled as the 'assessment order' should itself contain the computation of tax as well." A valid assessment upon the Hindu undivided family for the assessment year 1955-56 was central to the case of the Revenue. Since it was unable to establish, by the production of a signed assessment order for that year, that there was such a valid assessment, its case fell and th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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