Entry Made In Dispatch Register Does Not prove Service of Notice under Income Tax Act: Orissa HC [Read Order]

The Orissa High Court  in a recent case, has made it clear that an entry in the dispatch register maintained by the Revenue is not primary evidence to prove the service of notice on an assessee under Income Tax Act, 1961.

Alok Kumar Mohapatra, the Petitioner-assessee was aggrieved by rejection of application made under section 154 in Income Tax Act, 1961 for rectification. The petitioner was issued a notice for scrutiny assessment under Section 143(1).

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It was argued that he was erroneously assessed in spite of being entitled to exemption of charge of income tax under the proviso to Section 5(1)(c). The proviso exempts tax on income such of a person not ordinarily resident in India, which accrues or arises outside India (unless it is derived from a business controlled in or a profession set up in India). A demand against the Petitioner was uploaded in the system.

Petitioner claimed the said intimation of adjustment of refund never saw the light of the day. The Revenue on the other hand submitted that intimation was sent to the Petitioner and the system clearly says date of service to have been on 5th April, 2012.

The Revenue admitted that physical acknowledgement of intimation served on the Petitioner was not traceable.

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The division bench of Justices Arindam Sinha and MS Sahoo observed, that entry made in the system is not primary evidence. It has to be based on something to show that the assessment order denying the exemption claim was informed to petitioner.

The Court set aside and quashed the demand. Further directed the concerned authority to consider and deal with the rectification application in accordance with law.

To Read the full text of the Order CLICK HERE

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