INCOME TAX ACT, 1961

Section 147 section 151(1)

Reassessment - Validity - No valid service of notice and mechanical approval granted under section 151(1) -

Assessee challenged validity of reopening of assessment on the ground of mechanical approval given by Addl. CIT for reopening of assessment and further no service of section 148 notice was served on assessee. Held: Addl. CIT while giving approval had mentioned as under :-- 'I am satisfied that this is a fit case for issuing notice under section 147/148'. A perusal of the approval given by Addl. CIT showed that he had not applied his mind properly and had in a mechanical manner given his sanction for issuing notice under section 148. Further, notice under section 148 was handed over to the notice server and the said notice was served on the assessee through affixture in the presence of Inspector of ward on the same date, instead of first attempting to serve the same in person or through post, therefore, no notice under section 148 was ever served to the assessee and even if it is accepted that such a notice is served through affixture, even then also the same is not valid service being served after office hours and the notice so affixed does not bear the name of any witness of the localities other than the Income Tax Ward Inspector who accompanied the notice server. In view of all this reopening of assessment was not valid.

Relied:CIT v. N.C. Cables Ltd. (2017) 391 ITR 11 (Del-HC) : 2017 TaxPub(DT) 264 (Del-HC) and CIT v. S. Goyanka Lime & Chemicals Ltd. 231 Taxman 73 (MP-HC) : (2015) 56 taxmann.com 390 (MP) : 2018 TaxPub(DT) 4342 (MP-HC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2008-09

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