Reassessment Order Can't Be Made Until There Has Been Service Of Notice: ITAT

The assessee/appellant has challenged the validity of the reassessment order, stating that the mandatory requirement of service of notice under section 148 of the Income Tax Act was not followed, which vitiated the entire reassessment proceedings.

The assessee submitted that the return for the assessment year was filed, clearly mentioning the address of the assessee. The Department has in its knowledge the complete address, PAN details, and copies of the returns of the assessee with it. However, a notice under section 148 was issued simply mentioning the address of the assessee as Village Ghookna, Ghaziabad. The notice under section 148 was not served on the assessee.

The assessee contended that since the address in the notice was incomplete, the notice could not have been served on the assessee. In the absence of mandatory service of notice, the assessment made pursuant to notice is bad in law.

The ITAT observed that the department could not prove the service of notice under section 148 on the assessee in accordance with law. The reassessment made under section 147 read with section 144 pursuant to notice is void ab initio and bad in law.

Case Title: Naveen Tyagi Versus ITO

Citation: I.T.A No.2089/Del/2018

Dated: 20.06.2022

Counsel For Appellant: Advocate Somil Aggarwal

Counsel For Respondent: Sr. DR Om Prakash

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