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TMI Blog2014 (12) TMI 180X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunal took note of the fact that the issuance of a notice straight away through affixture is not proper - no efforts were made to send the notices to the partners through registered post with acknowledge due and even in the matter of affixture of notices, two defects have crept in viz,affixture was on a totally incorrect premises; and the procedure prescribed for affixture was i.e., taking signature of two persons living in the locality, was not followed - The appellant has no answer for all these defects pointed out by the Tribunal. Bar of limitation – Held that:- If the Department was under obligation to initiate proceedings within a stipulated time, on expiry of the same, the assessee gets a valuable right, in this behalf - The rigo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ricators (P) Limited, this Court allowed the writ petition filed by the respondent challenging the levy of excise duty. On the basis of that, the amount was refunded. On coming to know the fact that the amount of ₹ 45,09,366/- which was exempted in the assessment year 1982-83 was refunded, the Assessing Officer initiated steps against M/s.Anam Machinery Fabricators (P) Limited and an order of assessment was passed vis--vis the said amount. The company filed an appeal before the Commissioner of Income tax. The same was allowed on 15.04.1997, holding that the liability to pay income tax on the said amount if at all would be upon the respondent-firm or its erstwhile partners and not on the company. On a direction issued by the Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t petition filed by the respondent was allowed, steps were initiated against the company, which took over the business of the respondent and it was only in the year 1997, it emerged that the steps for levy of tax must be initiated against the respondent and accordingly they were taken. Learned senior counsel contends that the order passed by the Tribunal cannot be sustained in law. Smt. K. Neeraja, learned counsel for the respondent on the other hand submits that the business activity of the respondent-firm ceased from 01.04.1984 and the firm itself was dissolved in the year 1992 and every step taken by the Assessing Officer was contrary to law. She contends that the dissolution of the firm was very much in the knowledge of the Departmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessing Officer could have proceeded against the partners, duly serving notices upon them. It was not even the case of the Department that it is not aware of the factum of dissolution of the firm or taking over of the business, by the company. Still, it has chosen to proceed against the company. To bring the amount of ₹ 45,09,366/- under tax, though the Assessing Officer passed an order in that behalf, the Commissioner has rightly taken the view that the obligation to pay tax, if at all, would be on the respondent and its partners. Obviously, realising the mistake, the Department did not even carry the order passed by the Commissioner, in appeal. The Assessing Officer was very much aware that any proceedings in this behalf m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k note of the fact that (a) the issuance of a notice straight away through affixture is not proper; (b) no efforts were made to send the notices to the partners through registered post with acknowledge due; and (c) even in the matter of affixture of notices, two defects have crept in viz., (i) affixture was on a totally incorrect premises; and (ii) the procedure prescribed for affixture was i.e., taking signature of two persons living in the locality, was not followed. The appellant has no answer for all these defects pointed out by the Tribunal. The limitation has its own important role to play in the proceedings, that are initiated under the relevant enactments. In case of limitation for institution of the original proceedings, the rep ..... X X X X Extracts X X X X X X X X Extracts X X X X
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