Invalid service of notice u/s 148 leads to quashing of assessment proceedings. Importance of procedural compliance stressed.

The ITAT deemed the notice u/s 148 for A.Y. 2007-08 and 2008-09 invalid due to improper service. The absence of valid service rendered assessment proceedings invalid, leading to their quashing. The ITAT stressed the importance of adhering to procedural requirements, emphasizing the need for proper service in initiating proceedings. Consequently, the appeals of the assessee were allowed, highlighting the significance of following legal service procedures.

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Issues:
Validity of notice u/s 148 for A.Y. 2007-08 and 2008-09.

Analysis:
For A.Y. 2007-08, the AO completed assessment u/s 144 r.w.s. 147 due to non-compliance with notice u/s 148. The AO served notice by affixture as the assessee's whereabouts were unknown. The AO determined market value for capital gains tax. The CIT(A) upheld the validity of the notice. The AR argued no valid service of notice u/s 148. The DR argued service by affixture was valid. The ITAT found no evidence of proper service, quashing the proceedings.

For A.Y. 2008-09, similar issues arose. The AO completed assessment u/s 144 r.w.s. 147 due to non-compliance with notice u/s 148. The AO served notice by affixture as the assessee's whereabouts were unknown. The CIT(A) upheld the validity of the notice. The AR argued no valid service of notice u/s 148. The DR argued service by affixture was valid. The ITAT found no evidence of proper service, quashing the proceedings.

The ITAT noted the absence of proper service of notice in both cases. The department failed to prove valid service as per the Code of Civil Procedure. The ITAT emphasized the importance of proper service for initiating proceedings. Without valid service, the assessment proceedings were deemed invalid. The ITAT quashed the proceedings and allowed the appeals of the assessee.

In conclusion, the ITAT found the notice u/s 148 for both A.Y. 2007-08 and 2008-09 to be invalid due to lack of proper service. The failure to comply with procedural requirements led to the quashing of assessment proceedings. The ITAT emphasized the necessity of following proper service procedures as per the law.

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