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September 2012

Assessment: Notice: Section 143(2) A. Y. 2006- 07: Notice not served on correct address mentioned in return.

By K. B. Bhujle, Advocate
Reading Time 2 mins
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[CIT Vs. Mascomptel India Ltd.; 345 ITR 58 (Del.)]
For the A. Y. 2006-07, the Assessing Officer issued notice u/s 143(2) of the Income-tax Act, 1961. The notice could not be served and was received back with the remark that no such person existed at the address mentioned. An inspector was deputed to serve the notice personally, but he also reported that the company was not available at the address. The Assessing Officer, thereafter, served the notice by affixture. The assessment was made ex parte and a best judgment assessment order was passed. The Tribunal found that the assessee had mentioned a different address in the return of income filed for the A. Y. 2006-07 and held that the service by affixture was not valid and accordingly the assessment order was invalid.

On appeal by the assessee, the Delhi High Court upheld the decision of the Tribunal and held as under:

“i) No attempt was made to serve the assessee at the correct address which was available with the Department and in fact stated in the return of income for the A. Y. 2006-07.

ii) Subsequent attempt to serve another notice long after the expiry of the limitation period prescribed by the proviso, could not help the Revenue.”

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