Tribunal voids assessment order for failure to serve statutory notice on time.

The Tribunal allowed the appeal, quashing the assessment order as void ab initio due to failure to serve the statutory notice under Section 143(2) within the prescribed period. The Tribunal did not address the merits of disallowances or other issues raised by the assessee, as the procedural lapse rendered the assessment invalid.

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Issues Involved:
1. Validity of the assessment order due to the alleged non-service of statutory notice under Section 143(2) within the prescribed period.
2. Disallowance of Rs. 43,96,422 on account of 'other expenses'.
3. Disallowance of Rs. 78,89,482 under Section 36(1)(iii) on account of interest.
4. Rejection of additional evidence by CIT(A).
5. Charging of interest under Sections 234A, 234B, and 234C of the Income Tax Act, 1961.

Issue-wise Detailed Analysis:

1. Validity of the Assessment Order:
The primary issue was whether the statutory notice under Section 143(2) was served upon the assessee within the statutory period. The Tribunal noted that the notice dated 04.09.2014 was issued to an incorrect address (Shalimar Bagh) instead of the correct address (CR Park). The subsequent notice dated 29.09.2014 was served by affixation at the correct address without prior attempts to serve it through the ordinary process. The Tribunal found that the Assessing Officer (AO) did not follow the proper procedure for substitute service by affixation, as there was no evidence of efforts to serve the notice through ordinary means nor any satisfaction recorded by the AO that ordinary service was not possible. The Tribunal concluded that the mandatory notice under Section 143(2) was not served within the prescribed period, making the assessment order void ab initio.

2. Disallowance of Rs. 43,96,422 on Account of 'Other Expenses':
The Tribunal did not delve into the merits of the disallowance of Rs. 43,96,422 on account of 'other expenses' due to the primary issue of non-service of the statutory notice rendering the assessment order void ab initio.

3. Disallowance of Rs. 78,89,482 under Section 36(1)(iii) on Account of Interest:
Similarly, the Tribunal did not address the merits of the disallowance of Rs. 78,89,482 under Section 36(1)(iii) due to the invalidity of the assessment order stemming from the non-service of the statutory notice.

4. Rejection of Additional Evidence by CIT(A):
The Tribunal did not specifically address the issue of the rejection of additional evidence by CIT(A) because the assessment order itself was declared void ab initio.

5. Charging of Interest under Sections 234A, 234B, and 234C:
The Tribunal did not consider the issue of charging interest under Sections 234A, 234B, and 234C, as the assessment order was quashed due to the procedural lapse in serving the statutory notice.

Conclusion:
The Tribunal allowed the appeal filed by the assessee, quashing the assessment order for being void ab initio due to the failure to serve the statutory notice under Section 143(2) within the prescribed period. The Tribunal did not address the merits of the disallowances or other issues raised by the assessee, as the primary procedural lapse rendered the assessment invalid. The order was pronounced in open court on 4th December 2019.

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