Appeal allowed due to jurisdictional issue; notice not served under section 143(2)

The appeal was allowed primarily due to the jurisdictional issue arising from the non-service of notice under section 143(2) of the Act. The Tribunal quashed the lower authorities' orders, citing the lack of proper service of notice, and granted the Revenue the option to seek a recall if proper service is established later. The delay in filing the appeal was condoned by the Tribunal considering the injuries sustained by the assessee in a bike accident. The dispute regarding the alleged on-money payment on the purchase of a flat was not adjudicated upon due to the jurisdictional issue being the decisive factor in the case.

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Issues:
1. Delay in filing the appeal
2. Alleged on-money payment on purchase of a flat
3. Non-service of notice under section 143(2) of the Act

Analysis:
1. Delay in filing the appeal:
The appeal was filed challenging the order related to the assessment year 2007-08, but it was barred by a 94-day limitation. The assessee explained that the delay was due to injuries sustained in a bike accident, resulting in fractures in the neck, hand, and spine. The Tribunal, considering the circumstances, condoned the delay and admitted the appeal for hearing.

2. Alleged on-money payment on purchase of a flat:
The dispute centered around the addition of Rs. 3,49,600 as an alleged on-money payment on the purchase of a flat. The learned CIT(A) had confirmed this addition. However, the Tribunal, after hearing the parties, found that the assessment order lacked jurisdiction due to the non-service of notice under section 143(2) of the Act. Citing the legal proposition from the Supreme Court's decision in ACIT Vs. Hotel Blue Moon (321 ITR 362), the Tribunal concluded that without proper service of notice, the Assessing Officer could not scrutinize the return of income. Consequently, the Tribunal set aside the orders passed by the CIT(A) and the Assessing Officer.

3. Non-service of notice under section 143(2) of the Act:
The legal issue of non-service of notice under section 143(2) of the Act was pivotal in this judgment. The Tribunal emphasized that the Assessing Officer's jurisdiction over the assessee's income tax return is established only upon the proper service of the notice under section 143(2) of the Act. As the assessment record lacked proof of such notice, the Tribunal quashed the assessment order and subsequent decisions. The Tribunal granted the Revenue the option to seek a recall of the order if proper service of notice is established later.

In conclusion, the appeal filed by the assessee was treated as allowed, primarily due to the jurisdictional issue arising from the non-service of the notice under section 143(2) of the Act. The Tribunal's decision to quash the lower authorities' orders on this legal issue rendered other matters raised in the appeal unnecessary for adjudication.

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