TaxTMI 
TaxTMI 
2011 (5) TMI 911
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....rred by the revenue under Section 260A of the Income Tax Act, 1961 (in short "the Act") against the order dated 6.7.2007 passed by the Income Tax Appellate Tribunal, Amritsar Bench, Amritsar (hereinafter referred to as "the Tribunal") in ITA Nos. 638 and 634/ASR/2004, for the assessment year 1998-99, claiming the following substantial questions of law:- "(i) Whether in the facts and circumstances of the case the Hon'ble ITAT was right in law to hold that the service of notice u/s 148 was invalid and, therefore, it was not correct in quashing the assessment orders on the said grounds? (ii) Whether assessment order can be termed invalid merely by the reason of any mistake or omission in service of notice when Section 292B of I.T. Act, 1....
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....nder heads "sales of spare parts" and "evasion of sales-tax on bogus RD sales" were reduced to Rs. 85,950/- by reducing the GP rate from 15% to 2.7% and excluded the figure of 8.8% being sales tax in the GP rate (23.8%) applied by the Assessing Officer. Further, the CIT(A) deleted the addition of Rs. 43,08,570/- made on account of undisclosed income in servicing of vehicles. Being not satisfied, the assessee as well as the revenue filed appeals before the Tribunal. The Tribunal vide order dated 6.7.2007 dismissed the appeal filed by the revenue and allowed the appeal filed by the assessee. The Tribunal recorded that the service of notice under Section 148 of the Act was not valid and, consequently, the assessment order was annulled. Hence, ....
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....ngs. According to him, the amended provision being procedural applied to all pending proceedings. Learned counsel produced a certified copy of the return which was filed by the assessee and drew the attention to column No.12 thereof, where the assessee itself had written that the return was filed in response to the notice issued under Section 148 of the Act. Learned counsel for the revenue placed reliance on a Division Bench judgment of this Court in Hind Samachar Limited v. Union of India and others [2011] 330 ITR 266 (P&H) to submit that the technical defects would not make the assessment order invalid merely by reason of any mistake, defect or omission, if such return in substance and effect is in conformity with or according to the inte....
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....n in any proceeding or inquiry under this Act that the notice was -- (a) not served upon him; or (b) not served upon him in time; or (c) served upon him in any improper manner. Provided that nothing contained in this section shall apply where the assessee has raised such objection before the completion of such assessment or reassessment." 11. A presumption has been raised under the said provision relating to service of notice upon the assessee in respect of assessment or reassessment proceedings. According to this provision, where an assessee appears in any proceedings or cooperates in any enquiry relating to assessment or reassessment proceedings, it shall be presumed that the assessee has been validly served and it shall not be open ....
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.... are in conformity with or according to the intention and purpose of the Act. By incorporating this provision, it has been made clear that purely technical objections carrying no substance shall not come in the way of validity of assessment proceedings etc. In other words, minor defects or irregularities in the circumstances aforesaid, would not negate the validity of the proceedings initiated by the assessing officer and the assessee would not be able to raise technical or venial defects in this regard." 13. It is not disputed that in the return which was filed by the assessee, it was mentioned that the same was filed in response to notice under Section 148 of the Act. No objection regarding valid service of notice under Section 148 of th....