ITAT Chandigarh Judgments — March 2019

Following a decision in a sister concern's case, the Tribunal restored the issue of whether interest reimbursement under the TUF Scheme is a capital receipt back to the CIT(A) for fresh adjudication.

The Tribunal set aside the impugned order and restored the issues to the CIT(A) for a fresh speaking order. This was done to provide the assessee an effective opportunity of being heard, considering the miscommunication issues.

The Tribunal held that the CIT(A) passed an ex-parte order without ensuring proper service of notices and affording a reasonable opportunity of being heard. Principles of natural justice were violated.

The Tribunal held that the reassessment notice was issued on grounds that did not exist, as the assessee had not received any entry from M/s Kanodia Agencies. Therefore, the Assessing Officer lacked jurisdiction to make the reassessment.

The tribunal held that a notice under Section 148 must be issued in the name of a living person, and issuing it to a deceased individual renders it invalid. This is a foundational requirement for acquiring jurisdiction and cannot be cured by provisions like Section 292B or 292BB.