Appeals Dismissed: Notices u/s 148 Deemed Invalid Due to Improper Service, Assessment Proceedings Nullified.

The HC upheld the Tribunal's decision, dismissing the appeals concerning the validity of notices under section 148 of the Income-tax Act. The Court concluded that the absence of proof of proper service of these notices on the assessee rendered the assessment proceedings invalid. It was emphasized that issuing a notice under section 148 is essential for a valid assessment under section 147. The Tribunal's findings, which highlighted the revenue's failure to demonstrate proper service, were deemed conclusive, and the assessments were declared illegal and without jurisdiction.

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Issues:
Validity of notice under section 148 for assessment years under consideration.

Analysis:
The High Court dealt with the issue of whether the notice under section 148 of the Income-tax Act was validly issued and served on the assessee before framing assessment, which is considered a condition precedent. The Court noted that non-service of such a notice on the proper person is crucial and cannot be condoned. It was highlighted that there were categorical findings by the Tribunal indicating that the revenue failed to provide any evidence of serving notices under section 148 of the Act on the assessee for the assessment years in question. Despite repeated referrals back to the Assessing Officer by the CIT (Appeals), no concrete evidence was produced to confirm the service of the notice. The Tribunal observed that the proceedings for the assessment year were dropped due to the inability to serve the notice under section 148. These factual findings were deemed conclusive, and the absence of proof regarding the service of the notice was a critical factor. The Court emphasized that the issuance of a notice under section 148 is a prerequisite for framing an assessment order under section 147, and the absence of a valid or properly served notice renders the assessment illegal and without jurisdiction. Consequently, the High Court upheld the Tribunal's decision, dismissing the appeals as the Tribunal's view was deemed correct based on the facts and legal principles involved.

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