INCOME TAX ACT, 1961

Section 143(3)

Assessment - Validity - Non-service of notice under section 143(2) -

AO issued a notice under section 143(2) in name of assessee and sent the same on address 'X'. However, the said notice was returned unserved as the assessee, in return of income filed, stated his address as 'Y'. Thus, the notice was sent on the wrong address. Thereafter, no attempt was made by the AO to send the notice on the correct address and finally the assessment under section 143(3) was framed. Assessee contended that the assessment under section 143(3) was framed without serving the mandatory notice under section 143(2) despite the fact that the return was filed with the correct address. Therefore, such assessment order would not be sustainable. Held: It was an undisputed fact that notice under section 143(2) was not served on assessee as apparent from reply of AO in response to RTI application filed by the assessee. It was observed from the perusal of the said application that such notice was not served on the assessee. Further, it is settled position that non-service of notice is factual and serious defects in framing of assessment and renders the assessment proceedings as well as the consequent assessment order as null and void. Accordingly, the impugned assessment order was quashed.

Distinguished:Pr. CIT v. M/s. I-Ven Interactive Ltd. Civil Appeal No. 8132 of 2019 (arising out of SLP (C) No. 3530/2019 Order, dated 18-10-2019 : 2019 TaxPub(DT) 7063 (SC)

REFERRED : CIT v. Laxman Das Khandelwal (2019) 108 taxmann.com 183 (SC) : 2019 TaxPub(DT) 5081 (SC) and CIT v. Abacus Distribution Systems (India) Pvt. Ltd. (2017) 78 Taxmann.com 321 (Bombay High Court) : 2017 TaxPub(DT) 0718 (Bom-HC)

FAVOUR : In assessee's favour.

A.Y. :

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