2015 (5) TMI 797

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.... to the petitioner was transferred to New Delhi under Section 127 of the Income Tax Act, 1961. According to Mr. Poddar learned Senior Advocate for the petitioner the said order is invalid, illegal and suffers from incurable defects inasmuch as the same is passed in gross violation of the principles of natural justice and have been subsequently created and/or brought in existence in order to fill up the lacunae of a subsequent assessment orders passed by the jurisdictional Commissioner at New Delhi. He vehemently submits that no notice before initiation of the said proceeding was served upon his client and, therefore, no opportunity of hearing was given which offends Section 127 (ii)(a) of the said Act. He further developed his argument by s....

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....r the aforesaid provision has returned with the remarks 'not known' whereas the other notices have been duly received and served upon the assessee/petitioner. The learned Advocate for the respondent authorities submits that before passing a final order under Section 127 of the said Act, a notice was sent to the assessee/petitioner through a postal department and returned with the postal remarks 'not known'. He further submits that the petitioner was all along aware of the initiation of a proceeding under the said provision and, therefore, the story of non-service of notice is concocted for the purpose of securing the interim order. He, however, says that the respondent should be afforded an opportunity to place all the materials in this ....

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....he prejudice is shown to have caused to the person, mere non-compliance of the principles of natural justice, does not invalidate the action of the authorities. It is no doubt true that the Commissioner assumes jurisdiction under the statute and, therefore, cannot travel beyond it. The jurisdictional Commissioner at New Delhi is empowered to proceed with the case on the basis of an order passed under Section 127 of the said Act and not otherwise. Though feebly, Mr. Poddar tried to impress this Court that an assessment order has been passed by the jurisdiction Commissioner at New Delhi without affording an opportunity and without having communicated to the petitioner the impugned order dated 15th November, 2014 but this Court is not impresse....

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.... and an opportunity of hearing is given, the order ultimately passed should also be communicated, any infraction and/or non-compliance would render the said order invalid. From the records produced by the respondent, it appears that a notice dated 13.10.2014 was sent to the petitioner at the address recorded in the official register but came back undelivered with the remarks 'not known'. It further appears from the postal envelope containing the said notice that a remark is made as 'addressee moved'. Mr. Poddar, learned Senior Advocate for the petitioner, submits that the postal remarks 'not known' is not a good service and, therefore, no presumption can be raised on due service. The presumption under Section 27 of the West Bengal Genera....