ASHOK KUMAR,GHAZIABAD vs. ITO, WARD- 1(1), GHAZIABAD

The instant appeal filed by the assessee is directed against the order dated 30.04.2019 passed by the Ld. CIT(A) Ghaziabad arising out of the order dated 17.10.2016 under Section 147/144 of the Income Tax Act, 1961 for Assessment Year 2009-10. The main ground of appeal raised by the assessee challenging the order passed by the Assessing Officer in making addition for non- compliance with the notice issued under Section 148 and 142(1) by the appellant as the same was never received by the appellant before us.

During the year under consideration the assessee made cash deposit of Rs.17,57,000/- in the saving bank account during the financial year 2008-09. After recording reasons notice under Section 148 of the Act has been issued on 10.03.2016 upon approval of the Ld. PCIT, Ghaziabad, which was served through affixture to the assessee as claimed by the Assessing Officer. Subsequently, notice under Section 142(1) dated 09.05.2016 and then 20.07.2016 are claimed to have been served upon the assessee by the AO. No compliance of the notice and questionnaire since made by the assessee, reassessment was concluded upon making addition of Rs.17,57,000/- in the hands of the assessee which was further confirmed by the First Appellate Authority. Hence, the instant appeal before us.

The case of the assessee before us is this that no notice under Section 148 of the Act dated 10.03.2016 was served upon the assessee. As service of such notice upon the assessee is the jurisdictional requirement, mandatory in nature and not a procedural formality, the finalization of the reassessment proceeding without effecting proper service of such notice upon the assessee is invalid and liable to be quashed as the crux of the argument advance by the Ld. A.R.

On the contrary, the Ld. D.R has filed the report, perusal of which it appears that the assessee has duly been served with the notice under Section 148 of the Act, dated 10.03.2016 through speed post No. EU490272028IN on the very next day on 11.03.2016 on the address of the assessee i.e Shri Ashok Kumar Chaudhary S/o Sukhveer Singh H. No. 34 Village Mehrauli, PO- Shahpur Bamheta, Ghaziabad. However, the acknowledgement of service that the same has been received by the assessee has not been filed by the revenue before us so as to establish that service of notice issued under Section 148 of the Act dated 10.03.2016 has been effected, in the absence of which concluding the reassessment proceeding upon making the addition is not sustainable in the eye of law. In this regard, the Ld. Counsel appearing for the assessee relied upon very many judgments including judgment passed by the Hon’ble Jurisdictional High Court in the case of CIT, Central-1, Vs. Chetan Gupta, reported in (2015) 62 taxman.com 249 (Delhi) wherein it has been held that in order to complete reassessment notice under Section 148 has to be mandatorily served upon the assessee in accordance with Section 282(1), r.w. Order, Rule 12CPC and Order III, Rule 6CPC and the Ld. D.R has failed to bring to our notice any judgment passed by the judicial forum contrary to the ratio laid down in the judgment passed by the Hon’ble Delhi High Court as mentioned hereinabove as relied upon by the Ld. A.R.