The Supreme Court of India in the case of Principal Commr of Income Tax v M/s I-Ven Interactive Ltd holding in favour of the department, ruled that notice sent to wrong address of the assessee due to non-updating of new address in PAN by the assessee is not bad in law.
A number of notices were served to the assessee on his filing of the return to the address available as per his PAN. In response to one of the notices, a representative of the company appeared and challenged the notices on the ground of non-receipt of the notices within the period of limitation under proviso to Section 143 of the Income Tax Act 1961. The notices served were hence ruled to be bad in law by the subordinate Forums and hence the present appeal.
It was submitted on behalf of the Departmental Representative that there was no intimation by the assessee to the AO with respect to change of address and hence the notice as sent to the assessee on the available address.
The Bench constituting of Justices U U Lalit, Indira Banerjee and MR Shah held that the notices under Section 143(2) of the 1961 Act are issued on selection of case generated under automated system of the Department which picks up the address of the assessee from the database of the PAN and hence in case there is a change in the address of registered office or other offices, the same has to be intimated to the Registrar of Companies in Form 18. Thereafter, the assessee is also required to approach the Department with the copy of the said document and the assessee is also required to make an application for change of address in the departmental database of PAN.
On a failure to follow the above-mentioned procedure by the assessee, the judgment and order passed by the High Court, CIT (Appeals) and ITAT holding assessment bad in law on the aforementioned ground was quashed and since the CIT (Appeals) has not considered the appeal on merits, the matter is required to be remanded to the CIT.
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