Non Issuance of Proper Notice u/s 148 of Income Tax Act before Passing Assessment Order: ITAT Quashes Order [Read Order]

The Visakhapatnam bench of the Income Tax Appellate Tribunal( ITAT) quashed the assessment order passed by the assessing officer for non-issuance of proper notice under section 148 of the Income Tax Act,1961. 

Kakarla Guna Vidya Saraswathi, the appellant assessee was an individual, who sold an immovable property along with his son Kakarla Surya Gangadhara Tilak as co-owners having equal shares. The assessee appealed against the order passed by the Commissioner of Income Tax (Appeals) for confirming the Assessment order passed by the assessing officer without proper issuance of notice. 

Kama Sastry, the counsel for the assessee contended that there was no proper notice served on the assessee under sections 147 / 148 of the Income Tax Act and thus the assessment order was null and void. 

It was also submitted that the notice under section 148 of the Income Tax Act had not been served on the assessee before passing the order as mandated by section 148(1) of the Income Tax Act and the alleged service of notice was not in conformity with the provisions of the law and are liable to be deleted. 

O.N.Hari Prasada Rao, the counsel for the revenue contended that the assessing officer issued notice as per the address mentioned in the sale deeds and the whereabouts of the assessee are not known. 

It was also submitted that the inspector affixed the notice as contemplated under section 282 of the Income Tax Act and thus the notice was served on the assessee and relied on the decisions made by the lower authorities. 

The bench observed that the revenue had failed to establish that there was proper service of notice under sections 147 / 148 of the Income Tax Act before passing the assessment order. 

A single-member bench comprising Duvvuru Rl Reddy ( Judicial) held that the assessment order passed by the assessing officer was not as per the law and is liable to be quashed while allowing the appeal filed by the assessee. 

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