The Tax Publishers2021 TaxPub(DT) 0152 (Del-Trib)

INCOME TAX ACT, 1961

Section 148

Where AO had not made any attempt to serve the assessee by affixture or any other manner as prescribed under the provision of section 148 of law that no notice under section 148 was served upon assessee and assessment framed in absence of this notice was illegal and contrary to provision of law and not sustainable in eye of law as there was no evidence on record regarding service of notice issued under section 148.

Reassessment - Validity of Reopening of assessment - No notice under section 148 served upon assessee -

Assessee had received a certain sum which was not returned and brought to tax in the total income. AO issued a notice to assessee through postal service which remained unserved. The said sum had escaped assessment and accordingly he issued a notice under section 148 after obtaining approval from competent authority. Notice under section 148 was issued and sent by speed post at the available address but the same was returned back with postal remarks 'No such person'. Various notices as required by law were also issued but no one attended assessment proceedings, in spite of notice issued to director of assessee. AO completed assessment under section 147/144 on the basis of evidence available with him and made addition of a sum as unexplained credit under section 68. Held: As was clear from assessment records, the notice under section 148 was issued but was received back as unserved with postal remarks 'No such person'. AO had not made any attempt to serve the notice to assessee by affixture or any other manner as prescribed under the aforesaid provision of law, that no notice under section 148 was served upon assessee and assessment framed in absence of this notice was illegal and contrary to provision of law and not sustainable in the eye of law as there was no evidence on record regarding service of notice issued under section 148.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2010-11



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