Reassessment Voided: Improper Notice Service Invalidates Proceedings u/s 148 of Income Tax Act.

The HC dismissed the appeals concerning ITA Nos. 665/2015 & 666/2015, ruling that reassessment proceedings were invalid due to improper service of notice under Section 148 of the Income Tax Act. The Court emphasized that proper issuance and service of notice are jurisdictional prerequisites, which the Revenue failed to satisfy, rendering the proceedings void.

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Issues:
1. Exemption application subject to exceptions.
2. Condonation of delay in re-filing ITA Nos. 665/2015 & 666/2015.
3. Determination of whether notice under Section 148 of the Income Tax Act was duly issued and served.

Analysis:
1. The Court allowed the exemption application subject to just exceptions and disposed of the application.
2. The delays in re-filing ITA Nos. 665/2015 & 666/2015 were condoned based on the reasons stated in the applications, and the Court disposed of the related applications.
3. The main issue revolved around the determination of whether the notice to the Assessee under Section 148 of the Income Tax Act was properly issued and served. The Court emphasized that the notice and service are jurisdictional requirements that must be mandatorily complied with, not mere procedural formalities. The Court cited a previous decision to summarize the legal position, highlighting the importance of proper service of notice for reassessment proceedings. The Court noted that the burden is on the Revenue to show proper service of notice, which was not discharged in this case. It was established that reassessment proceedings without proper notice are invalid and liable to be quashed. The Court found that the notice was not issued at the correct address, even though the Assessee had informed the Assessing Officer of the address change. The Court rejected the argument that the Assessee should have updated the PAN database with the new address, emphasizing that the AO was aware of the change and still failed to issue the notice at the correct address. The Court held that providing a photocopy of the notice during reassessment proceedings does not constitute sufficient service of notice as required by law. Consequently, the Court dismissed the appeals, finding no substantial question of law for determination.

This detailed analysis of the judgment highlights the issues involved, the legal principles applied, and the Court's reasoning leading to the dismissal of the appeals.

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