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July 2019

Section 143 – Assessment order passed in the name and status of the HUF where the notice was issued in the name and status of an individual is invalid and such an assessment order deserves to be quashed

By Jagdish T.Punjabi|Devendra Jain | Tejaswini Ghag
Chartered Accountants
Reading Time 2 mins
17 [2019] 105 taxmann.com 201
(Pune)
Pravin Tilokchand Oswal
(HUF) vs. ITO
ITA No. 1917/Pun/2018 A.Y.: 2007-08 Date of order: 4th
April, 2019

 

Section 143 –
Assessment order passed in the name and status of the HUF where the notice was
issued in the name and status of an individual is invalid and such an
assessment order deserves to be quashed

 

FACTS

The assessment order was passed in the status of the HUF,
whereas proceedings were initiated by issue of notice u/s. 143(2) of the Act in
the name of the individual. Both the individual and the HUF were assessed to
tax and had different and distinct PAN numbers. The first notice for getting
jurisdiction to make the assessment was issued u/s. 143(2) of the Act in the
name of the individual and the PAN number of the individual was clearly
mentioned. However, assessment was made in the hands of the HUF.

Aggrieved,
the assessee preferred an appeal to the CIT(A) who decided it on merits but did
not decide the jurisdictional issue and passed an ex parte order against
the assessee.

 

The aggrieved assessee preferred an appeal to the Tribunal
where it was pointed out that the information received under the Right to
Information Act clearly mentioned that notice was issued for the individual and
proceedings were carried out for the individual. However, the assessment was
made in the name of the HUF.

 

HELD

The Tribunal held that since notice was issued in the name
of the individual and assessment completed and made in the name of the HUF, the
assessment order was invalid and bad in law. The Tribunal quashed the
assessment order. It decided in favour of the assessee.

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