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“service of notice”

ReassessmentSection 148Section 1483,297 judgments

The decision most relied on for service of notice is Earthmoving Equipment Service Corporation v. DCIT 22(2), Mumbai (84 Taxmann.com 51), cited in 263 judgments on BharatTax.

Leading authorities on service of notice

Earthmoving Equipment Service Corporation v. DCIT 22(2), Mumbai
84 Taxmann.com 51 · 2017 · ITAT
263
citing judgments

A penalty levied under Section 271(1)(c) for concealment of income or furnishing inaccurate particulars cannot be deleted merely due to technical defects in the penalty notice, such as not ticking the specific default, if the assessee understood the charges.

CIT v. Laxman Das Khandelwal
417 ITR 325 · 2019 · Supreme Court
225
citing judgments

Issuance of a notice under Section 143(2) is a mandatory requirement for completing an assessment when a return is filed, including reassessment under Section 147/143(3). The complete absence of this notice renders the assessment invalid and is not curable by Section 292BB.

1. S. S. Gadgil v. Lal & Co.
53 ITR 231 · 1964 · Supreme Court
158
citing judgments

Income-tax assessment proceedings are administrative in nature, not civil disputes or judicial proceedings between contesting parties. Income-tax authorities act as administrative bodies to estimate income and assess tax, and the proper service of notice within the limitation period is foundational for reassessment jurisdiction.

Munjal BCU Centre of Innovation and Entrepreneurship v. CIT (Exemptions)
463 ITR 560 · 2024 · High Court
75
citing judgments

Service of notice through the ITBA portal is not a valid method of service under section 282(1) of the Income-tax Act, 1961, and Rule 127(1) of the Income-tax Rules, 1962. Consequently, matters where notice was deemed invalidly served via ITBA portal are remanded to the Assessing Officer for a de novo disposal to uphold principles of natural justice.

Narayana Chetty v. ITO
35 ITR 388 · 1959 · Supreme Court
73
citing judgments

A valid and properly served notice under section 148 (or old section 34) is a mandatory and jurisdictional prerequisite for initiating reassessment proceedings; its absence or invalidity renders the entire proceedings illegal and void ab initio. The validity of service hinges on adherence to prescribed modes, not merely the recipient's acknowledgment.

Mavis Satcom Ltd. v. Deputy CIT
337 ITR 389 · 2011 · High Court
68
citing judgments

The present case is cited as authority for the proposition that notices issued under Section 148 of the Income-tax Act, 1961, are valid even if they do not refer to the reasons recorded for initiating reassessment proceedings, provided the reasons are communicated to the assessee. Furthermore, the issue of jurisdiction under Section 124(3) and the validity of notice under Section 143(2) are also key areas addressed.

CIT v. Gitsons Engineering Co.
370 ITR 87 · 2015 · High Court
68
citing judgments

The issuance of a notice under Section 143(2) is mandatory, and its non-service or invalidity is not a curable procedural irregularity, rendering subsequent assessment proceedings void. Objections regarding non-service of notice, being a jurisdictional issue, can be raised for the first time before the Tribunal.

Banarsi Debi v. ITO
53 ITR 100 · 1964 · Supreme Court
63
citing judgments

For income-tax notices, particularly under Section 34(1) of the 1922 Act (corresponding to Sections 147/148 of the 1961 Act), there is no real distinction between the 'issue' and 'service' of a notice. The word 'issued' must be given a wider meaning, effectively encompassing 'served'.

Judgments citing service of notice

ITO, Ward- 6(3), New Delhi vs. Conclusive Traders Pvt. Ltd., New Delhi

In the result, the appeal filed by the Revenue stand dismissed

ITA 7317/DEL/2017[2009-10]Status: DisposedITAT Delhi29 Apr 2025AY 2009-10

Bench: Shri Shamim Yahya & Shri Sudhir Pareeka.Yr. : 2009-10 Ito, Ward 6(3), Vs. Conclusive Traders Pvt. Room No. 376A, C.R. Ltd. Building, I.P. Estate, 51/2, D.B. Gupta Road, Karol New Delhi Bagh, New Delhi – 5 (Pan: Aadcc3358B) (Appellant) (Respondent) Assessee By None Department By Shri Rajesh Kumar Dhanesta, Sr. Dr Date Of Hearing : 29.04.2025 Date Of Pronouncement : 29.04.2025 Order Per Shamim Yahya: Am This Appeal Filed By The Revenue Is Directed Against The Order Dated 27.09.2017 Passed By The Ld. Cit(A)-Xxvi, New Delhi In Relation To Assessment Year 2009-10 On The Following Grounds:- I) The Ld. Cit(A) Has Erred In Deleting The Addition Made U/S 68 Of The Act Amounting To Rs. 2,85,00,000/- Received By The Assesee Company As Unexplained Cash Credit. Ii) The Ld. Cit(A) Has Failed To Prove The Identity, Genuineness & Creditworthiness Of The Transactions As Per Judgement Of Hon’Ble Delhi High Court In Case Of M/S Nova Promoters & Finlease Pvt. Ltd. Where It Was Held That Mere Filing Of Pan No.

Section 142(1)Section 143Section 143(2)Section 147Section 148Section 234BSection 68

original return to the AO. Keeping in view the factual matrix of this case along with various judicial pronouncements it is clear that service of notice u/s 142(1) upon the Assessee Company and regular attendance in the assessment proceedings is no substitute for issue and service of notice ... circumstances. Section 292BB of the Act is of no avail in the circumstances in view of the facts of the case. III. The service of notice u/s. 142(1) upon the appellant and regular attendance in the assessment proceedings does not substitute ‘issue’ and ‘service’ of notice