TaxTMI 
TaxTMI 
2011 (5) TMI 911
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.... facts are being taken from ITA No. 292 of 2008. 2. This appeal has been preferred 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 re....
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....ed 13.9.2004 upheld the addition made on account of undisclosed income in the sale of vehicles whereas the additions made under 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....
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....led to raise any such objection before the assessing officer was not entitled to raise such objection in the appellate proceedings. 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 r....
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....on on him has been duly served upon him in time in accordance with the provisions of this Act and such assessee shall be precluded from taking any objection 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 c....
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....ng shall be rendered invalid merely on account of any mistake, defect or omission where the return, assessment, notice, summons or other proceeding in substance and effect 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 ....