This article provides a comprehensive analysis of the case ITA No. 4810/DEL/2019, where the appellant, Shashi Kanta, contested against the respondent, ITO Ward-04, Panipat. The case pertains to the assessment year 2010-11. The appeal was filed on May 27, 2019, and the final tribunal order was pronounced on September 8, 2022.
The dispute arose when the Income Tax Officer (ITO) initiated proceedings under Section 147 of the Income Tax Act based on the information that Shashi Kanta, along with another person, had sold an immovable property for a consideration of Rs. 35,07,000, which was not offered for taxation. Consequently, the ITO issued a notice under Section 148 to reopen the assessment for the assessment year 2010-11. The assessment was completed ex-parte under Section 147/144, and an amount of Rs. 9,98,277 was added back as short-term capital gain.
The primary grievances raised by the appellant were:
The appellant, represented by Sh. Satyam Aneja, Advocate, argued that the notice under Section 148 was never served on the correct address of the appellant. The notice was issued to an incorrect address, and hence, the service was not valid. To substantiate this claim, the appellant provided evidence showing the correct address through various documents such as Aadhar Card and Passport, which did not match the address used for issuing the notice.
The Delhi ‘SMC’ Bench of the Income Tax Appellate Tribunal (ITAT) heard the appeal, with Shri Saktijit Dey as the Judicial Member. The hearing took place on August 31, 2022, and the order was pronounced on September 8, 2022.
The ITAT noted the following points:
Considering these points, the ITAT concluded that the notice was not validly served on the appellant. As a result, the assessment order passed under Section 147/144 was deemed invalid.
The ITAT’s final judgment is summarized as follows:
Considering the facts of the case in totality and the judicial decisions discussed hereinabove, I hold that the impugned assessment order passed under section 147/144 of the Act is invalid in absence of a valid service of notice issued under section 148 of the Act on the assessee. Accordingly, I quash the assessment order. As a natural corollary, the impugned order of learned Commissioner (Appeals) is set aside.
Order pronounced in the open court on 8th September, 2022.
Sd/-
(SAKTIJIT DEY)
JUDICIAL MEMBERDated: 8th September, 2022
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(A)
5. DR
Asst. Registrar, ITAT, New Delhi
Shashi Kanta vs ITO Ward-04, Panipat: Analysis of Invalid Service of Notice in ITA No. 4810/DEL/2019
Manage the increasing number of hearings effortlessly by leveraging the legal AI revolution We are India's Leading revolutionary AI-powered legal platform where you can get enough insights into top cases and judgements.
Research Platform