Mahesh Gautam Vs CIT (Allahabad High Court)
Allahabad High Court held that in absence of valid service of notice under section 148 of the Income Tax Act, proceedings under section 147 of the Income Tax Act for reassessment cannot be initiated. Accordingly, appeal of the assessee allowed.
Facts- Based on the information received from the Central Excise Department, AO issued notice u/s. 148 of the Income Tax Act for A.Y. 2001-02, 2002-03 and 2003-04. These notices were sent via speed post to appellant’s address, but no return was filed by the appellant.
Thereafter, notice u/s 142(i) of the Act, 1961 and a date was fixed for hearing on 20.08.2008, but in response to the same, neither the appellant nor his authorized representative appeared nor filed any application for adjournment. Thereafter, another notice was also sent to the appellant fixing the date for hearing on 02.12.2008 at two addresses available on record. Still the appellant failed to appear before the Assessing Officer. Thereafter, AO sent the Income Tax Inspector to deliver a notice to the address on record. However, the Income Tax Inspector reported that the whereabouts of the appellant could not be ascertained. Therefore, AO continued with the re-assessment proceeding and passed ex parte order u/s 147 r.w.s. 144 of the Act, 1961, assessing the total income of appellant as Rs.11,87,980/- for the A.Y. 2003-04. This order was sent to the appellant’s address in Khandaar Swai Madhopur, Rajasthan, which was duly received by him.
