Inadequate service of notices at an old address led to remand of the assessment for fresh adjudication on merits.

Service of notices at an old address and the resulting inadequate opportunity justified reopening the assessment. The Telangana HC noted that the premises where notices were served had been sold before the notice under section 148A was issued, and the challenge was limited to seeking a chance to contest the assessment on merits. Although the taxpayer had not informed the department of the change of address, the request was treated as bona fide in the interests of justice. The assessment order under sections 147 and 144 was set aside and the matter remanded to the Assessing Officer for fresh decision in accordance with law, with liberty to file a response and without a fresh show-cause notice.

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Issues: Whether the assessment order passed under Section 147 read with Section 144 of the Income-tax Act, 1961 for assessment year 2018-19 was liable to be set aside and remanded for fresh adjudication on the ground of inadequate opportunity and service of notices at an old address.

Analysis: The petitioner showed that the premises where notices were served had been sold prior to issuance of notice under Section 148A, and the petition also proceeded on the assertion that the petitioner was abroad during the relevant period. Although there was an admission that the change of address was not communicated to the department, the challenge was confined to seeking an opportunity to contest the assessment on merits. In these circumstances, the Court found the request bona fide and considered that the interests of justice would be served by reopening the matter before the Assessing Officer.

Conclusion: The assessment order was set aside and the matter was remanded to the Assessing Officer for fresh decision in accordance with law, with liberty to the petitioner to file a response and without requiring issuance of a fresh show cause notice.

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