ITAT Quashes Re-Assessment since Service of Notice by Affixture was done at a Wrong Address [Read Order]

Kolkata bench of Income Tax Appellate Tribunal (ITAT) recently quashed the re-assessment under section 147/148 of the Income Tax Act since service of notice by affixture was done at a wrong address.

In this case, the Assessing Officer (AO) issued a notice under Section 148 of the Income Tax Act 1961 during the assessment proceedings and without concluding that proceedings again a second notice issued under section 148 of the Income Tax Act by the CIT (A) to the same assessee for the purpose of re-assessment proceedings.

The assessee company was on appeal before the tribunal by challenging the service of secondly issued notice. And the assessee contended that the secondly issued notice by affixture was done at the old or wrong address hence the same is not valid still the assessee does not has any liability on the said notice.

AO stated that he received the assessment records from the jurisdictional AO only in 2003 following restructuring in the department. Hence, these reasons recorded are without reference to the material available in the assessment record. Hence, there is non-application of mind.

After considering the rival submissions of both the parties the tribunal bench comprising of Judicial Member S.S. Viswanethra Ravi and Accountant Member J. Sudhakar Reddy observed that the assessee’s registered office was not at the place on which service of affixture was done by the Inspector of Income-tax. The bench further found that when service is to be done by affixture the responsible authority should at least enquire whether the assessee resides in this premises or not or whether this is the registered office of the assessee company. “But in the present case it is clear that the affixture was done at a wrong address. Thus, there is no valid notice of the second 148 notice,” the bench said.