Appeal granted: Reassessment order invalidated due to lack of valid notice under Section 148.

The Tribunal allowed the appeal of the Assessee, setting aside the reassessment order as invalid due to the lack of a valid notice under section 148. Consequently, the additions made on merit were not adjudicated, and both the reassessment order and the appellate order were canceled.

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Issues:
1. Validity of assessment based on notice under section 148
2. Additions made on account of purchases from a specific entity
3. Use of alleged statement against the appellant
4. Request for permission to modify grounds of appeal

Issue 1: Validity of assessment based on notice under section 148

The appeal was filed challenging the order passed by the Ld. CIT(A)-22, New Delhi relevant to assessment year 2006-07. The assessee objected to the validity of the assessment made by the ITO, Ward 28(2), New Delhi without proper service of a valid notice under section 148. The AO completed the reassessment despite the objection raised by the assessee. The Ld. CIT(A) confirmed the addition made by partly allowing the appeal of the assessee. The assessee contended that the AO who issued the notice u/s 148 did not have jurisdiction over the assessee, and the reassessment order was without jurisdiction. The Tribunal found merit in the assessee's contention, stating that the reassessment order was invalid as the jurisdictional AO did not issue a notice u/s 148. Citing a precedent, the Tribunal set aside the reassessment order, declaring it invalid and void ab initio.

Issue 2: Additions made on account of purchases from a specific entity

The Ld. CIT(A) confirmed the additions made on account of purchases amounting to Rs. 5,58,076 from a specific entity, considering them as bogus. The appellant raised objections to the validity of these additions and the use of the alleged statement of the proprietor of the entity against the appellant. However, since the Tribunal found the reassessment order invalid based on the issue of jurisdiction, the additions made on merit became academic and were not adjudicated.

Issue 3: Use of alleged statement against the appellant

The appellant argued that the Ld. CIT(A) was not justified in using the alleged statement of the proprietor of the entity against the appellant. However, since the reassessment order was deemed invalid due to the lack of a valid notice under section 148, the issue of using the alleged statement became irrelevant and was not further discussed by the Tribunal.

Issue 4: Request for permission to modify grounds of appeal

The appellant prayed for permission to add, alter, modify, or substitute any or all of the grounds of appeal. However, since the reassessment order was declared invalid, the Tribunal allowed the appeal of the assessee based on the jurisdictional issue, making the request for modifying the grounds of appeal unnecessary.

In conclusion, the Tribunal allowed the appeal of the Assessee, setting aside the reassessment order as invalid due to the lack of a valid notice under section 148. As a result, the additions made on merit were not adjudicated, and the reassessment order, as well as the appellate order, were cancelled.

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