Notice u/s 143(2) served on Wrong Address invalidates Assessment Order: ITAT [Read Order]

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that notice u/s 143(2) served on wrong address invalidates the assessment Order.

Shivaji S. Desai, the assessee assailed the findings of CIT(A) in confirming the addition of Rs.24,96,910/- in respect of income from sale stock and disclosed in Financial Year 2005-06 under the head ‘Business Income’.  The assessee has also raised an additional ground of appeal challenging the validity of assessment in absence of valid service of notice under Section 143(2) of the Income Tax Act, 1961 (the Act).  

Shri Prakash Pandit appeared on behalf of the assessee and contended that the assessee never resided or carried its business at the said address where the notice was allegedly served by affixture or speed post.  As per   PAN data, the address of the assessee is “Shop no. 3/4, Plot No. C-10, Shiv Parvati, Sector-10, Nerul (W), Navi Mumbai” and “1001, Tower No.2, Sagar Darshan CHS, Plot No. 38, Palm Beach, Sector-18, Nerul, Navi Mumbai 400 706”.  The assessee is residing at the latter address for the last 20 years. The summons issued under Section 131 of the Act was served on the assessee at the said address.

The Assessing Officer fell in error in serving statutory notice by affixture on a wrong address. Shri Abhijeet Chaudhary & Shri Mehul Jain appeared for the revenue has not placed on record any documentary evidence to substantiate that in the first instance any effort was made by the AO to serve the notice on either of the addresses as mentioned in the PAN database. 

A Coram of Shri G S Pannu, president and Shri Vikas Awasthy, judicial member observed that the service of notice issued under Section 143(2) of the Act directly by affixture and on an address on which the assessee had never resided or carried its business is not valid.  No service of notice is issued under section 143(2) of the Act on the assessee.  Assessment under section 143(3) made without notice under section 143(2) of the Act suffers from jurisdictional defect.

The assessment made without notice under section 143(2) of the Act to the assessee was quashed and the appeal of the assessee was allowed by the Tribunal.

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates