Raj Singh vs. ITO: Successful Appeal on Faulty Assessment Procedure for AY 2009-10

Raj Singh vs. ITO: Successful Appeal on Faulty Assessment Procedure for AY 2009-10

Case Number: ITA 6297/DEL/2019

Appellant: Raj Singh, Noida

Respondent: Income Tax Officer, Ward-3(1), Noida

Assessment Year: 2009-10

Order Type: Final Tribunal Order

Date of Order: August 12, 2022

Pronounced On: August 12, 2022

Case Filed On: July 26, 2019

Tribunal Bench: Delhi Bench F: New Delhi

Judges: Dr. B. R. R. Kumar (Accountant Member) and Sh. Yogesh Kumar US (Judicial Member)

Background of the Case

The appellant, Raj Singh from Noida, filed an appeal against the Income Tax Officer, Ward-3(1), Noida, concerning the assessment year 2009-10. The primary issue challenged was the validity of the assessment procedure due to an alleged lack of proper service of notice under section 148 of the Income Tax Act, 1961.

Reason for Filing the Appeal

Raj Singh initiated the appeal to challenge the legality of the assessment order issued by the ITO, arguing that the notice required under section 148 was not properly served, rendering the assessment invalid.

Assessment Proceedings and Tribunal’s Decision

During the proceedings, it emerged that the revenue authorities could not produce evidence of the proper service of notice. The lack of this critical procedural step led to the questioning of the entire assessment’s validity.

The tribunal reviewed the original records and found no evidence of the service of notice. The Departmental Representative was unable to contradict this finding or provide evidence to the contrary.

Outcome of the Appeal

Based on the lack of evidence for notice service, the tribunal held that the assessment order issued without proper notice under section 148 was invalid. Consequently, the appeal filed by Raj Singh was allowed, leading to the quashing of the assessment order and any related penalties for the assessment year 2009-10.

Final Order

The final order, pronounced by Dr. B. R. R. Kumar and Sh. Yogesh Kumar US, allowed the appeal, effectively nullifying the assessment and penalties imposed on Raj Singh for the year 2009-10. This decision underscored the importance of adhering to procedural requirements in tax assessments.

Conclusion

The case of Raj Singh vs. ITO demonstrates the critical role of procedural correctness in tax assessments. The successful appeal highlights the necessity for tax authorities to adhere strictly to legal requirements, particularly concerning the service of notices. This decision provides a precedent for other taxpayers facing similar procedural issues in their assessments.

Raj Singh vs. ITO: Successful Appeal on Faulty Assessment Procedure for AY 2009-10