Reassessment made without serving Notice u/s 148 is Invalid: ITAT [Read Order]

In a significant ruling, the Delhi bench of the Income Tax Appellate Tribunal (ITAT) has held that reassessment made without serving notice u/s 148 is invalid and will not sustain.

The appellant assessee challenged the order of CIT (Appeals) on the validity of the non-service of notice issued under Section 148 of the Income Tax Act, 1961.The appellant contended that notice under Section 148 of the Act was not served and thereopening of the assessment is void in the absence of service of notice u/s 148. Further stated that there was no proof of service of notice under Section 148 of the Act on the record.

The AO recorded a finding that the assessee failed to make any compliance with the notice andproceeded to complete the assessment under Section 147 read with section 144 of the Income Tax Act.

The Tribunal observed that held that the Revenue failed to prove the service of notice u/s 148 on the assessee and the re-assessment made u/s 147 read with section 144 pursuant to such notice as void ab initio. 

In light of the case of CIT Vs. Chetan Gupta, Shri Challa Nagendra Prasad, JM quashed the reassessment order dated 11.12.2018 made u/s 144 read with section 147. The appeal of the assessee was allowed.The assessee was represented by Shri Gurdeep Singh and the revenue was represented by Shri Om Prakash.

To Read the full text of the Order CLICK HERE

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