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TMI Blog2016 (7) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... The Ld. CIT(A) has erred in accepting the assessee's story by not appreciating the efforts made by the AO in making the proper service of notice u/s 148 and more seriously the fact that the assessee himself vide letter dated 24.01.2014 received by the AO on 27.01.20l4 has stated his address as H.No 1626, Sector 18-D, Chandigarh , the very address at which the initial notice u/s 148 were served. 4. It is prayed that the order of the Ld. CIT(A) be cancelled and that of the assessing officer may be restored. 4. The assessee filed original return of income on 11.01.2007. Later on, case was reopened by issue of notice under section 148 of the Act dated 22.03.2013 after recording the reasons as reproduced at page 1 to 3 of the assessment order. The Assessing Officer noted that notice under section 148 issued on 22.03.2013 was served upon assessee on 26.03.2013 by affixture, as earlier notice sent by post was returned by the postal authorities. The assessee did not file any return of income in response to notice under section 148. The other statutory notices sent to assessee remained uncomplied with. However, later on, assessee filed a reply dated 27.01.2014 stating that no notice u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hereby annulled. As the reassessment order has been annulled, the other grounds of appeal become infructuous. 6. In the result, the appeal is allowed. 7. We have considered rival submissions. The ld. DR furnished copy of the return filed by assessee, copy of notice under section 148 dated 22.03.2013, copy of service of the notice by affixture dated 26.03.2013 and copy of the letter of assessee dated 24.01.2014 filed in response to notice under section 142(1) dated 17.01.2014. The ld. DR contended that assessee has filed letter dated 24.01.2014 in which assessee has given his address at house No. 1626, Sector 18-D, Chandigarh. He has submitted that service by affixture is valid mode of service. The ld. DR submitted that ld. CIT(A) should not have annulled the re-assessment order. He has relied upon decision of Hon'ble Supreme Court in the case of M/s Deepak Agro Foods Vs State of Rajasthan dated 11.07.2008 in Civil Appeal Nos. 4327-28 of 2008, decision of Hon'ble Punjab & Haryana High Court in the case of V.R.A. Cotton Mills Pvt. Ltd. Vs. Union of India 359 ITR 495 and decision of the Hon'ble Supreme Court in the case of Estate of Late Ranga Lal Jajodia 79 ITR 505. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eriod commencing on the 1st day of October, 1991 and ending on the 30th day of September, 2005 in response to a notice served under this section, and (b) subsequently a notice has been served under sub-section (2) of section 143 after the expiry of twelve months specified in the proviso to sub-section (2) of section 143, as it stood immediately before the amendment of said sub-section by the Finance Act, 2002 (20 of 2002) but before the expiry of the time limit for making the assessment, re-assessment or recomputation as specified in sub- section (2) of section 153, every such notice referred to in this clause shall be deemed to be a valid notice: Provided further that in a case- (a) where a return has been furnished during the period commencing on the 1st day of October, 1991 and ending on the 30th day of September, 2005, in response to a notice served under this section, and (b) subsequently a notice has been served under clause (ii) of sub-section (2) of section 143 after the expiry of twelve months specified in the proviso to clause (ii) of sub-section (2) of section 143, but before the expiry of the time limit for making the assessment, reassessment or recomputation as spe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon'ble Supreme Court that; "The notice prescribed by Section 34 of the Indian Income Tax Act, 1992, for the purpose of initiating re- assessment proceedings is not a mere procedural requirement, that the service of the notice on the assessee is a condition precedent to the validity of any re-assessment made under this Section and that if no notice is issued or if the notice issued is shown to be invalid, then the proceedings taken by the Assessing Officer without a notice or in pursuance of an invalid notice would be illegal and void". Hon'ble Delhi High Court in the case of CIT Vs Hotline International P. Ltd. 296 ITR 333 held as under : "Section 282 of the Income-tax Act, 1961, lays down the mode of service of notices. According to it, any notice under the Income-tax Act has to be served on the person named therein either by post or as if it were a summons issued by the court under the Code of Civil Procedure, 1908. Order V of rule 19A of the Code of the Civil Procedure, provides for simultaneous service by post in addition to personal service. Under Order V, rule 17 of the Code, the affixation can be done only when the assessee or his agent refuses to sign the acknowl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed re-assessment on 27.03.2014 and correctly mentioned the address of the assessee in the re-assessment order as House No. 1627, Sector 18-D Chandigarh. Therefore, the Assessing Officer did not attempt to verify the address of the assessee from his own record as well as did not mention the correct address in the notice under section 148 of the Income Tax Act. Since assessee was not residing at the given address, as given in the notice under section 148 of the Act as House No. 1626, Sector 18-D Chandigarh, therefore, there is no question of any valid service through affixture of the notice under section 148 of the Act at this address because assessee was not residing at the given address. The ld. DR heavily relied upon letter of the assessee dated 24.01.2014 which was issued in response to notice under section 142(1) dated 17.01.2014 in which assessee has mentioned the address to be house No. 1626, Sector 18-D Chandigarh. First of all, this letter is filed after alleged service of the notice under section 148 by affixture, therefore, it may not be relevant for the purpose of deciding the issue. Further, according to submission of ld. counsel for the assessee, this wrong address was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 148 of the Act dated 22.03.2013 have not been served upon assessee, therefore, the re-assessment made under section 147/148 cannot be held to be valid because the same is bad in law. There is no question of service by affixture by the Inspector at the wrong address upon assessee. The ld. CIT(Appeals), therefore, in proper perspective correctly set aside the re-assessment proceedings. We do not find any justification to interfere with the order of the ld. CIT(Appeals) in allowing the appeal of the assessee. The departmental appeal has no merit. The same is, accordingly, dismissed. ITA 336/2015 14. In this appeal, Revenue challenged the order of ld. CIT(Appeals) and appeal of the assessee in reference to proceedings under section 154 of the Income Tax Act. The Assessing Officer in the proceedings under section 154 of the Act rectified the re-assessment order dated 27.03.2014. The ld. CIT(Appeals) noted that since proceedings under section 148 have been annulled by him vide order dated 21.01.2015, therefore, rectification of proceedings under section 154 of the Act would not survive. Since, we have dismissed the main appeal of the revenue in ITA 335/2015, therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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