“Section 282(1)”
The decision most relied on for Section 282(1) is Pr. CIT v. Silver Line (383 ITR 455), cited in 201 judgments on BharatTax.
Leading authorities on Section 282(1)
For reassessment under Section 147, the Assessing Officer must record reasons and communicate them to the assessee. An assessee's participation in proceedings pursuant to a Section 148 notice does not obviate the mandatory requirement of recording and communicating reasons or issuing a Section 143(2) notice.
Employee contributions to provident fund or ESI are deductible if deposited with the authorities before the due date for filing the income tax return under Section 139(1), even if deposited after the due date prescribed by the respective fund's Act.
The rule of consistency requires that in the absence of any change in material facts or law, a different view or decision on an issue cannot be adopted for subsequent assessment years, thus ensuring uniformity in tax assessments.
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.
Reassessment proceedings and subsequent assessment orders are invalid if the notice under Section 148 is not validly served, such as when issued to an incorrect address or when affixture is improper.
Section 282 of the Income Tax Act, 1961 specifies the modes for serving notices, including by post or summons under the Code of Civil Procedure. A valid service of notice is essential for assessment or reassessment proceedings, and its absence renders such proceedings bad in law.
For substituted service of notice by affixation to be valid, the serving officer must exercise all due and reasonable diligence to find the assessee or their agent, strictly adhering to the procedure under Rule 17 of Order V of the Civil Procedure Code. Failure to follow this proper procedure renders the service invalid and cannot sustain subsequent proceedings.
The genuineness of transactions, particularly the creditworthiness of creditors for share capital, is a key factor in the addition under section 68. The assessee must provide sufficient evidence to prove the genuineness of such transactions.
