Achraj Singh Madhan Vs CIT (ITAT Delhi)
Reassessment Quashed for Non-Service of Notice: ITAT Delhi Strikes Down Jurisdictional Lapse
The Delhi ITAT “A” Bench, in Achraj Singh Madhan v. CIT (ITA No. 547/Del/2024, AY 2012-13; order dated 29.12.2025), has quashed the reassessment proceedings after holding that the mandatory jurisdictional notice u/s 148 was never validly served on the Assessee.
The Assessee raised an additional legal ground contending that the notice u/s 148 initiating reassessment was issued and served at an old Karnal address, despite the Department being aware of the Assessee’s current Gurugram address as reflected in records and subsequent communications. The Tribunal admitted the additional ground as it went to the root of jurisdiction.
On examining the assessment records, the Tribunal found that while the assessment order referred to a notice dated 22.03.2019 u/s 148 allegedly served by post, the Revenue failed to establish valid service at the correct address. The Department’s reliance on a later notice dated 24.11.2019 was found misplaced, as it related to proceedings u/s 144 r.w.s. 147 and not to the foundational jurisdictional notice u/s 148.
Relying on the Delhi High Court decision in Veena Devi Karnani v. ITO (410 ITR 23), the Tribunal held that issuance of notice at an old or incorrect address vitiates reassessment, and such a defect cannot be cured by invoking section 292B. Since proper service of notice is a condition precedent for assumption of jurisdiction u/s 147, the entire reassessment was rendered void ab initio.
Accordingly, the ITAT allowed the Assessee’s appeal and quashed the impugned reassessment order in toto.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal is preferred by the assessee against the order dated 08.12.2023 of the Ld. National Faceless Appeal Centre (NFAC) Delhi, (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in DIN & Order No : ITBA/NFAC/S/250/2023-24/1058599122(1) arising out of the order dated 24.11.2019 passed u/s 144 r.w.s 147 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) by the ITO, Ward 1(1) for AY: 2012-13.
