ITAT quashes Assessment Order on Non-Service of Notice to relevant Address of Assessee [Read Order]

The Income Tax Appellate Tribunal (ITAT), Amritsar Bench quashed the assessment order on non-service of notice to the relevant address of the assessee, Sohan Lal Bhatoya.

The assessee is a bank employee, during the assessment year 2009-10 the notice was issued u/s 148 for reopening of assessment for the sale of property in Jalandhar. The notice was issued at the address which was already the assessee left. The assessee did not file the return during this assessment year. But the PAN was allotted. The AO did not issue the notice at the address mentioned in the PAN data base of ITD. The assessment was completed in exparte with an additional amount of Rs.42,14,163 for long-term capital gain.

The aggrieved assessee filed an appeal before the CIT(A) and challenged both the legal and factual aspects of the appeal. The CIT(A) upheld the order of the AO. Aggrieved by the order of the Commissioner, the assessee preferred an appeal before the Tribunal.

The Counsel for the assessee argued that the assessee was sold out of the property in Jalandhar. The assessee stated in this address to be selling the property. After the transfer of the property, the assessee was to his original address at Hoshiarpur which is mentioned in the PAN database. The AO wrongly issued a letter and notice to the address at Jalandhar but due to the absence of the assessee, the notice was unserved. The AO wrongly issued and mention the address at Jalandhar without issuing the notice in the address at Hoshiarpur which is mentioned in the PAN database.

A Division Bench consisting of Anikesh Banerjee, Judicial Member, and Dr. M L Meena, Accountant Member held that “The entire assessment was itself erroneous and bad in law due to non-service of notice to the relevant address of the assessee. Accordingly, the assessment order itself is void and liable to be quashed.”

To Read the full text of the Order CLICK HERE

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