The Tax Publishers2020 TaxPub(DT) 5409 (Hyd-Trib)

INCOME TAX ACT, 1961

Section 147

When assessee was assessed to tax by ITO, Ward-13(3), Hyderabad, there was no reason as to why ITO, Ward-10(1), Hyderabad should exercise jurisdiction over assessee by issuing notice under section 148 at old address of assessee. Accordingly, there was no valid service of notice under section 148 in terms of section 282 at correct address of assessee within a reasonable period of time by revenue and reassessment framed by AO was quashed as void ab initio.

Reassessment - Validity - Issuance of section 148 notice by AO not having jurisdiction over assessee and non-service of notice at correct address within reasonable time -

Assessee challenged validity of reassessment framed by AO on the ground that notice under section 148 dated 31-3-2017 was never served on assessee within a reasonable period of time at the correct address and even notice was issued by AO not having jurisdiction over assessee. Held: Notice under section 148, dated 31-3-2017, which was sought to be served at the old address of assessee came back unserved to department on 9-4-2017. It was not known what AO was doing from 9-4-2017 to 19-7-2017, in as much as the AO sought to restart the process of service of notice under section 148 at correct address of assessee only on 19-7-2017. The period of delay from side of AO from 9-4-2017 to 19-7-2017 did not stand explained there could not be any allegation that could be levelled on assessee of non-intimation of change of address to IT Department because assessee had duly intimated new address to IT Department and had changed the address in PAN Portal and several documents, such as, generation of TDS certificate by SBI given to assessee mentioning new address of assessee. Even when assessee was assessed to tax by ITO, Ward-13(3), Hyderabad, there was no reason as to why ITO, Ward-10(1), Hyderabad should exercise jurisdiction over assessee by issuing notice under section 148. Accordingly, there was no valid service of notice under section 148 in terms of section 282 at correct address of assessee within a reasonable period of time by revenue and reassessment framed by AO was quashed as void ab initio for want of jurisdiction of AO and for want of proper service of notice at correct address of assessee within reasonable time.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2010-11



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