Smt. Manjit Kaur W/o Sh. Balbir Singh, Ludhiana V. ITO, Ward -1, Jagraon

ITA 593/CHANDI/2022

AI Insights

The case involves Smt. Manjit Kaur, who appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, which upheld the assessment order passed by the assessing officer. The primary contention was the lack of a mandatory notice under section 143(2) of the Income Tax Act, 1961, which is essential for proceeding with the assessment under section 143(3). The appellant argued that no valid notice was served, and thus the assessment was invalid. The Tribunal examined the procedural requirements and previous judgments, particularly focusing on the necessity of issuing a notice under section 143(2) before finalizing the assessment.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127880 (ITAT-CHANDIGARH)
• Duration Of Justice: 7 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-03-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 21-03-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 11-08-2022
• Other Referred Cases: Hotel Blue Moon (2010) 3 SCC 259, CIT vs. Laxman Das Khandelwal [2019] 108 taxmann.com 183 (SC)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 54; 201; 43; 22

Judgement Text

आयकर अपील य अ धकरण,च डीगढ़ यायपीठ, च डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, “B”,CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER & SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 593/ C H D / 2 0 2 2 नधा रण वष / Assessment Year : 2 0 1 2 - 1 3 Manjit Kaur, W/o Shri Balbir Singh, H.No.3604, Mohhalla Gurunankpura, Raikot -141109, District Ludhiana बनाम The ITO, Ward-1, Jagraon थायी लेखा सं./PAN NO: ICCPK3815B अपीलाथ /Appellant यथ /Respondent नधा रती क ओर से/Assessee by : Shri Sudhir Sehgal, Advocate. राज व क ओर से/ Revenue by : Shri M.P. Dwivedi, Sr.DR स ु नवाई क तार#ख/Date of Hearing : 22.03.2023 उदघोषणा क तार#ख/Date of Pronouncement : 24.03.2023 आदेश/Order P er S an jay G ar g, Ju d ic i a l Me mb er : T hi s a pp e a l h as be en pre fe rre d by th e a s se s s e e a g a in s t t he or de r da t ed 15. 0 6. 20 22 o f t he L d. Co m m i s s i one r o f I nc o m e Ta x (A p pe al s ) , N at i o na l F a ce l es s A p pea l C e n t re ( N F A C) , D el hi [ he rei n a ft e r r e f er r e d t o a s ‘ CIT (A )’ ]. 2. T he A s s e s s ee ha s t a ke n fol l ow i n g gr o u nds o f ap pea l : - ITA No. 593-Chd-2022 Smt. Manjit Kaur, Ludhiana 2 1. a . T hat t h e W or t h y C I T ( A) has e r re d i n c onf i r m i ng t he a ct i o n of t h e L d. A s s es s ing O f f i c er w i t h r e gar d t o r e - op e ni n g o f t h e c as e u /s 1 4 8 of t he I nc om e T ax Ac t , 1 961 . b. T hat th e C IT (A ) h as f a il e d t o ap p r e c i a t e th at no v a l i d no t i c e u/ s 14 8 ha s be e n s e r ve d up on t he a s s es s e wh i ch i s t he m an d at or y r e qui r em e nt . c . T hat n ot wi t hs ta nd i ng t h e ab ov e gr ou n ds of ap pea l, th er e wa s no r e as o n to be l ie v e th at t he In c o m e of t h e as s e s s ee has e s ca pe d as s es s m e nt . 2. T hat t h e Wo rt hy C IT (A ) h a s e r r ed i n up ho l d i n g t he as s e s sm ent or de r p as s ed by th e As s e s s in g O f f ic e r wi t ho ut i s s ua nc e o f n o t i c e u / s 1 43 (2 ) o f t he In c om e T ax Ac t , 1 9 61 w h i c h was m an d at or y r e qu ir e m e n t. 3. No t w i t hs t an di ng t h e ab ov e gr o un d s o f a pp e a l , Wor t hy CIT (A ) h a s e r r ed in u p ho l d i n g t he a d di t i o n of R s . 4 2, 85, 97 8/ - out of th e t ot al a dd i t io n o f R s . 8 4, 46, 32 1 m ade by t h e L d. As s es s in g O f f i c e r . 4. T hat t h e Wo rt hy C IT (A ) h a s e r r ed i n up ho l d i n g t he r e je c ti on o f t he r at e o f Rs . 3 9 p e r s q . ya r ds ad op te d by t h e a s s es s e e o n th e b as i s o f t he v a lu at io n r ep ort of th e R egi s t er e d V al uer an d h as er r e d i n a do p t i n g t he ad -h oc r a t e of Rs . 27 pe r s q . y ar d s w it ho ut a ny ba s is . 5. T hat t he W or t h y C I T (A ) has e r r ed i n n ot g iv i n g th e be n e f i t o f e x em pt i o n c l a im e d u/ s 54 B o f t h e In c om e T ax Ac t , 1 9 61. 6. T hat t h e a p pe ll an t c r av e s le av e t o ad d or am en d t h e gr o u nds o f a ppe al be f or e t he ap pe al i s f in a l l y h e ard or di s po s ed- o ff. ITA No. 593-Chd-2022 Smt. Manjit Kaur, Ludhiana 3 3. In t hi s a p p e a l t he A s ses s e e, i nt e r a l ia , ha s c ont e s te d t h e v a l i di t y o f t h e as s e s s me n t fra me d u / s 14 3( 3) re a d w i t h s ec t io n 14 7 o f th e In c o m e T ax A c t , 19 6 1 ( h er e i n a ft er c a l l e d ' t he A c t ') fo r w an t o f i s s ue o f m a nd a t o r y n ot i ce u / s 1 43( 2) o f t he A ct . 4. A t t he ou t s et , t h e L d. c o un se l fo r t he a s s es s e e ha s i n vi t e d ou r a tt e n t i o n t o pa ge 8 1 o f t he p a p e r bo o k w hi c h is a cop y o f t he i n fo r ma t i o n r e c e i v e d un de r RT I A c t fr o m t he I n co me -t ax D e p ar t m e n t w he re in , t he I nc o m e T a x O ff i c e r, Wa r d- 1 , C u m- CP I O , J a gr a on vi d e l et t e r da t e d 2. 9. 20 2 1 ha s i n f or m e d t ha t as pe r r e cor d , a re tu r n o f i n c o m e fo r a s se s s me nt ye a r 20 1 2 -1 3 w a s s ub mi t t e d ma n u a l l y b y t he A s se s s e e on 1 7. 1 2. 20 19 a n d t ha t no n o ti c e u/ s 1 43 ( 2) o f t he A c t w a s i s s ue d i n t h is c as e . Th e L d. co un s e l h as a l s o i n v i t e d o u r a tt e n t i on t o th e p a pe r b oo k pa g e s 1 t o 21 w hi c h a re c op i e s o f va r i ous n ot i c e s is s ue d for v er i fi c a t i on o f t h e fi na nc i a l t r a ns a c t i o n s, for r e q u i s i ti on o f in fo r ma t i o n, n ot ic e u /s 14 8 o f t h e A c t e t c . t o s ub mit t ha t t h e a dd r es s me n ti o n e d i n t h e s ai d no t i c es w as i nc o m p le t e, s uc h a s : “ Sm t . Ma nj i t Ka u r , W/ o Ba l v i r Si ng h R ai ko t - 14 11 09 . ” 5. T he Ld. C o uns e l i n t hi s r e s pe ct ha s s ub mi t t e d t ha t t he a ddr es s i n t he a for es a i d no t i c e w a s i ns u ffi c i e nt . H e h as fu r t her i nv it e d our a tt e n t i o n t o th e c o pi e s o f t he pos t a l / re gi s t e r e d e nv e l o p e , w hi c h w er e re c ei ve d ba c k by t he D ep ar t m en t a s un- s e r v ed w i t h the re ma r ks “ s hor t a dd r es s ” or “ i n c o m pl e t e A d d re s s ” ITA No. 593-Chd-2022 Smt. Manjit Kaur, Ludhiana 4 6. T he L d. c ou ns e l t h e re a ft er h as i nv i t e d our a t t e nt i on t o t he p ap e r bo ok p ag e 2 2 t o s u b mi t t ha t t h e onl y t he no ti c e r e ce i v ed by t he A s s es s e e i n t h i s b e ha l f w a s da t e d 12 . 12 . 201 9 i s s ue d u/ s 14 2 ( 1) o f t he A ct , w he re b y, th e A s s es s e e w a s c a l l e d u po n to p r e par e a nd fi l e t he t r ue a nd c or r e c t r et ur n o f i n c o m e, i n p u rs ua nc e o f w h i ch, t h e A s s es s e e fi l ed t he re t u r n o f i nc o me . T h e pe r us a l o f t h e a s s es s me nt o rd e r r ev e a ls t ha t th e A O th er e a ft er , p ro c e e d e d t o fr a m e th e as se s s me n t on t he b a s is o f th e r e t u r n fi l e d by t h e A s s es s e e al on g w it h t he r e l ev a nt d o c u m e n ts w i th o ut i s s ui n g a n y n ot i ce u /s 14 3( 2 ) o f t h e In c o m e T a x A c t . In th is c as e no n o t i c e s e ve r w a s i ss ue d u /s 14 3( 2 ) o f t h e Ac t b y th e A O t o t he A s s es s e e . 7. It has n ow bee n s et t le d pos i t i on o f l a w th at i s sua nc e o f not i c e u /s 14 3(2 ) o f t h e A c t i s ma nd at or y fo r t h e A O t o p r o c eed w i t h t h e a s s es s men t u / s 14 3( 3 ) o f t h e A ct , e v e n i n c as e s pe rt a i n i n g t o t he re o p e ni ng o f t h e as s e s s me n t u / s 147 o f t he I nc o m e- ta x A c t . Re l i a n c e i n t hi s r es p e c t c a n be pl a c e d o n t he de c i s io n o f the H on ' b le S u pr e m e Co u rt i n ‘ H o t e l B l ue m o o n ( 20 1 0 ) 3 S CC 2 59, w h er ei n, t h e H o n ' b l e S upr e m e C o u rt h as he l d t ha t t h e o m i s s io n on t he part o f t he A O t o is s u e no t i c e u/ s 14 3 ( 2 ) o f t h e A c t c an n ot be s a i d t o b e a pr oc e d u ra l i rr e g u l a ri t y a n d t he s a me i s n o t c ur ab l e a n d, t he refo r e, t h e r e q u ir e m e n t o f no t i c e u / s 1 4 3( 2) o f th e A c t ca n no t b e d is p e n se d w i t h. F ur th er , re l ia nc e c a n b e pl a ce d o n t h e d ec i si o n o f t he H on ' bl e S u pre me C o u rt i n ITA No. 593-Chd-2022 Smt. Manjit Kaur, Ludhiana 5 t he c as e o f ‘ CI T V s . La x ma n D a s K ha nde l w a l ’ [2 01 9] 1 0 8 t a x ma n n. c o m 18 3(S C ) w he re i n i t i s hel d a s und er : - “ 7. A c l os e r l o o k a t S ec t i on 2 9 2 B B s h ows t h at i f t he as s e s s ee has par t ic i pa t e d i n t h e pr oc e e di ng s i t s hal l be de em e d t ha t an y no t i c e wh i c h is r eq ui r e d t o b e s e r ve d up on w a s d u ly s er v ed a n d t h e a s s ess e e w o u l d be pr e cl ud e d f r om ta k i n g a ny o bj ec ti o n s t h a t t h e no t i c e w as (a) n o t s er v e d u po n hi m ; o r (b ) no t s e r ve d u p on h im i n t i m e ; or (c ) s er v e d u po n hi m i n an i m p r o pe r m an ne r . A cc or d i n g to Mr . Mah ab i r Si n g h, l e ar n e d Se n i or A d v oc at e , s i nc e t h e R es po nd e n t ha d p a r ti c i p a t e d i n t he p r o ce e d in gs , t he pr o vi s i o ns of S e c t i on 29 2 B B wo u l d b e a c om p l e t e an s w er . O n t he o th er han d, Mr . A nk i t V ij ay w ar gi a, l e a r ne d A dv o c a t e , app ea r i ng f or t he R e s po n den t s ubm i t t e d t ha t t he no t i ce u n d er S ec t i o n 14 3 ( 2) of t h e A c t w as ne v er i s s ue d w hi c h w as e v i d en t fr o m th e or de r s pa s se d o n r e c or d a s wel l as t h e s ta n d t a k e n b y t h e A p pe l l a n t i n t h e m em o of a ppe al . I t w a s f ur t h e r s ub m i t t e d t ha t i s s ua nc e o f n o ti c e u n de r S ec t i o n 14 3(2 ) of t he A ct b e i n g p r er e q ui s i te , i n t he a bs en ce of s u ch no t i ce , t h e e n ti r e pr o c e e d i n gs w ou ld b e i nv al id . 8. T he l a w o n t he poi nt as r e gar ds a ppl ic ab il i ty o f t he r e q ui r em e nt of no t i c e un de r Se c t i on 14 3 ( 2) o f t he A ct i s q u it e c l ea r f r om th e d e c i s i on i n Bl u e Mo o n ’s c as e ( s upr a) . T he i s s ue t hat h o we v e r ne e ds ITA No. 593-Chd-2022 Smt. Manjit Kaur, Ludhiana 6 t o be co ns i d er e d i s t h e im p a c t of Se ct i on 2 9 2 BB o f t he A c t. 9. A cc or di ng t o S ec t io n 2 92 BB o f t h e A ct , i f t h e as s e s s ee had p ar t ic i pa t e d i n t h e pr o c e e di ngs , by w ay of l e ga l f ic t i o n, no ti c e w o ul d b e de e m ed t o b e v al id e ve n i f t he re b e i nf r a c t i o n s as d e t ai l e d in s ai d Se c ti on. T h e s c o p e of t he pr ov is i o n is t o m a k e s e r vi c e of not i c e hav in g c e r t a i n i n f i r m it i es t o b e pr o per a nd v a l i d i f t he r e w as r eq ui s it e p ar ti c i p a t io n on par t of th e as s e s s ee . It i s , how e v e r , t o be no t ed t ha t t he S ec ti o n d o e s n ot s av e c om p l e t e a bs en c e o f no t i c e. F or S ec t i o n 29 2 BB t o a ppl y , th e n ot i ce m us t ha v e e m a na te d fr o m t he d e p a rt m e n t . It is o nl y t h e i nf ir m i t i e s in t h e m an ne r of s er v i c e of n ot ic e t h a t t he Se c ti on s e ek s t o c u r e. T h e Se c t i on is n ot in t e n de d t o c ur e c om p l e te abs e nc e o f no ti c e i ts e l f. ” 8. Re s pe ct fu ll y f ol l o w i ng t he pr o p os i t i on o f t he law l ai d dow n i n t he s e or d e rs s t at ed ab o ve , w e ho l d t h a t t he a s se s s me n t or d e r i s b ad i n l aw fo r t h e re as o n t ha t t h e as s e s s i ng a u t h or i t y p ass e d t he o rd e r u /s 14 3(3 ) o f th e A ct w i t ho u t i ss u in g ma nda to ry no t i c e u / s 14 3(2 ) o f t h e A ct . A cc or d in gl y, t h e a s s es s me n t or de r is , he re by , qu as h e d. In th e re s ul t , t he ap pea l is a ll ow e d. O r d e r p r o n o u n c e d o n 2 4 . 0 3 . 2 0 2 3 Sd/- Sd/- (VIKRAM SINGH YADAV) (SANJAY GARG) Accountant Member Judicial Member Dated : 24. 03.2023 “आर.के .” ITA No. 593-Chd-2022 Smt. Manjit Kaur, Ludhiana 7 आदेशक त*ल+पअ,े+षत/ Copy of the order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent 3. आयकरआय ु -त/ CIT 4. +वभागीय त न0ध, आयकरअपील#यआ0धकरण, च2डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड फाईल/ Guard File आदेशान ु सार/ By order, सहायकपंजीकार/ Assistant Registrar