Invalid Notice Served: Assessment Quashed

The Appellate Tribunal, ITAT Cuttack, allowed the appellant's appeal in a case concerning the validity of service of notices under sections 143(2) and 142(1) and the assessment legality due to serving notice to the wrong person. The Tribunal found that the service of notice to an unauthorized individual invalidated the assessment, as it violated statutory provisions. Consequently, the assessment for the relevant year was directed to be quashed based on the invalid service of notice.

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Issues:
1. Validity of service of notices under sections 143(2) and 142(1).
2. Assessment legality based on service of notice to the wrong person.

Issue 1: Validity of service of notices under sections 143(2) and 142(1):
The appeal arose from the order of the Commissioner of Income-tax (Appeals) for the assessment year 2009-10. The appellant contested the legality of the orders of the forums below, specifically challenging the non-service of notices under sections 143(2) and 142(1). The appellant argued that the alleged service by the respondent to an unauthorized person, Pinaki Prasad Swain, was illegal and deprived the appellant of natural justice. However, the learned Commissioner of Income-tax (Appeals) found that the notices were duly served and the appellant had responded by appearing before the Assessing Officer through an authorized representative. The Commissioner concluded that the appellant was not deprived of natural justice before the assessment was completed.

Issue 2: Assessment legality based on service of notice to the wrong person:
The appellant contended that the service of notice to an unknown person, Pinaki Prasad Swain, rendered the assessment illegal and void. Citing a decision from the Income-tax Appellate Tribunal, Delhi Bench, the appellant argued that the notice served on an unauthorized individual, who was neither an agent nor an employee of the appellant, was invalid. The appellant emphasized that the service of notice to a wrong person, not related to the appellant, violated the provisions of section 282 of the Income Tax Act, making the notice void ab initio. Consequently, the appellant's appeal was allowed, and the assessment was directed to be quashed based on the invalid service of notice.

In conclusion, the Appellate Tribunal, ITAT Cuttack, in the cited judgment, addressed the issues of the validity of service of notices under sections 143(2) and 142(1) and the assessment legality due to the service of notice to the wrong person. The Tribunal upheld the appellant's argument that the service of notice to an unauthorized individual invalidated the assessment, following the legal precedent and statutory provisions. As a result, the appellant's appeal was allowed, and the assessment for the relevant year was directed to be quashed.

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