JKS IMPEX PVT. LTD.,DELHI vs. ITO, NEW DELHI

PDF · subscribers
ITA 378/DEL/2017Status: DisposedITAT Delhi05 October 2017AY 2007-084 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the notice under Section 148 was not validly served as it was sent to an old address when the department had the assessee's updated addresses. Therefore, the reassessment proceedings initiated under Section 147/148 are bad in law.

What were the facts?

The assessee filed its return for AY 2007-08 on 27.9.2007. A notice under Section 148 was issued on 28.3.2014, but it was sent to an old address. The assessee had updated its address with the department multiple times, and subsequent intimations were served at the correct, updated addresses.

What were the issues?

The primary issue was whether the notice under Section 148 was validly served on the assessee, given the change of address and the department's knowledge of the new address.

Which sections of the Income-tax Act were involved?

Section 148,Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’ NEW DELHI

Before: SHRI B.P. JAIN

For Appellant: Smt. Shilpi Jain, CA
Hearing: 03/10/2017Pronounced: 05/10/2017

Appellant by : Smt. Shilpi Jain, CA Respondent by : Sh. T. Vasanthan, Sr. DR सुनवाई क� तार�ख/Date of Hearing : 03/10/2017 घोषणा क� तार�ख /Date of Pronouncement: 05/10/2017 ORDER PER B.P. JAIN, A.M. This appeal of the assessee arises from the order of learned CIT(A)-5, Delhi, vide assessment order dated 20.12.2016 for the Assessment Year 2007-08.

2.

The assessee presses the legality of the issue that Section 148 is not applicable in the present circumstances and facts of the case since no notice has been served within the time allowed under the law.

3.

The learned CIT(A) rejected the legal ground of the assessee and the assessee is in appeal before the Tribunal.

4.

I have heard the rival contentions and perused the facts of the case. It is a matter of fact that the return in the present case for the assessment year 2007-08 was filed on 27.9.2007 and accordingly notice under Section 148 should have been issued on 31st March, 2014. The notice was issued on 28.3.2014 but at the old address at 4514, 1st Floor, Pahadi Dheeraj, Delhi whereas the return was also filed at the same address. But the assessee had changed the address vide acknowledgement of change in correction in PAN data dated 12.12.2008 available at PB 67 which is D-4/4 Ganga Triveni Apartments, Sector 9, Rohini and it is relevant to mention that intimation under Section 143(1) was also served on the assessee at the Rohini address which is dated 19th March, 2009 available at PB 66. Again the address was changed by the assessee to 412 M.G. House, Wazirpur Industrial Area, Delhi 110052 which is dated 31.5.2011 as per Income Tax PAN Services unit available at PB 65. In such circumstances, sending the notice at the old address especially when the new address is available with the department, how the notice can be served upon the assessee. Issuance of a notice is wrong itself and is bad in law and the AO does not seize the reassessment proceedings i.e. AO does not acquire the jurisdiction under Section 147/148 of the Act. The reassessment proceedings so initiated are bad in law and are directed to be quashed. The legal ground of the assessee is allowed.

5.

Since the legal ground of the assessee is allowed but I am not deciding the issue on merit.

6.

In the result, appeal of the assessee in is allowed.

Order pronounced in the open court on this day 05/10/2017.

More judgments on Section 148

All 35,022 judgments and leading authorities on Section 148 →

Recent GST High Court judgments

Search GST case law →