Tribunal voids notice due to improper service, deems assessment illegal. Mother's deposits not appellant's.

The Tribunal invalidated the notice issued under section 148 due to lack of proper service. It deemed the proceedings initiated and assessment made based on the notice as illegal and void ab initio. The Tribunal found the addition of Rs. 670,000 unjustified as the deposits were made by the appellant's mother, not the appellant. Consequently, the Tribunal allowed the appeal, directing the AO to delete the addition and emphasizing the incorrectness of attributing the deposits to the appellant.

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Issues:
1. Validity of notice u/s 148
2. Initiation of proceedings u/s 148 and assessment based on notice
3. Addition of Rs. 670,000 in assessment

Validity of notice u/s 148:
The appeal challenged the presumption of service of notice u/s 148 based on the AO's remand report. The appellant argued that the notice was never served, even by affixture or speed post, and thus should be quashed. The Tribunal considered this argument and concluded that without proper service, the notice u/s 148 deserved to be invalidated.

Initiation of proceedings u/s 148 and assessment based on notice:
The appeal contested the validity of proceedings initiated u/s 148 and subsequent assessment, claiming they were illegal and void ab initio. The Tribunal noted that the AO issued the notice without tangible material or valid reasons, solely based on assumptions. The appellant argued that the addition of Rs. 670,000 was made on unfounded presumptions without evidence. The Tribunal agreed, finding the proceedings initiated without proper application of mind to be illegal and directed the deletion of the addition.

Addition of Rs. 670,000 in assessment:
The appellant's counsel argued that the cash amount deposited was by the appellant's mother, not the appellant, and thus no addition should be made in the appellant's hands. The Tribunal examined the bank statements, confirming withdrawals and subsequent deposits by the mother, not the appellant. The AO's decision to add Rs. 670,000 was based on incorrect assumptions. The Tribunal found that the deposits were made by the mother much earlier than the impugned dates, and the addition in the appellant's hands was unjustified. The Tribunal directed the AO to delete the sustained addition of Rs. 670,000.

In conclusion, the Tribunal allowed the appeal, finding the notice u/s 148 invalid, the proceedings initiated illegal, and the addition of Rs. 670,000 baseless. The Tribunal emphasized that the deposits were made by the appellant's mother, not the appellant, and directed the AO to delete the addition.

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