2015 (9) TMI 390

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..../2009 for AY 2001-02 and ITA No. 3531/Del/2009 for AY 2002-03. 2. By the order dated 28th July 2014, this Court framed the following two substantial questions of law for determination: "1. Whether the Income Tax Appellate Tribunal ("ITAT") was right in nullifying the assessment orders on the ground that they were barred by limitation? 2. Whether the order of the Tribunal is perverse as the Assessee had never accepted service of notice under Section 147/148 of the Income Tax Act, 1961 dated 23.09.2005 and had claimed that the said notice was never served or received by him?" 3. The facts in brief are that the Assessee was engaged in the business of commission agent of food grains under the name and style of M/s. Rahul....

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....hearing fixed for AYs 2001-02 to 2005-06 on 24th April 2006. In this letter it was mentioned that enough adjournments had already been granted and that the assessment proceedings for the AYs upto 2004-05 are going to be barred by limitation that year itself. 6. The counsel for the Assessee, however, pleaded that he did not have enough time to prepare for the case hearing and sought 15 more days" time. By the letter dated 26th April 2006, the AO adjourned the date of hearing to 5th May 2006. Summons was also issued on 26th April 2006 under Section 131 of the Act requiring the Assessee to produce the complete books of accounts and documents related to his business for the AYs 2001-02 and 2005-06. By a letter dated 3rd May 2006, the counsel....

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....een accepted by the ITAT is that when the re-assessment proceedings pursuant to the notices issued on 21st September 2005 were still pending and had not been completed by 31st December 2006 as was required by law, it was legally impermissible that fresh notices under Section 148 of the Act could be issued to the Assessee. The ITAT has after examining a large number of decisions of the High Court and the Supreme Court come to the conclusion that the issuing of fresh notices under Section 148 of the Act for AYs 2001-02 to 2004-05 was impermissible in law. The assessments for the said AYs were annulled as being barred by limitation. 10. The legal position appears to be fairly well settled. In S. B. Jain, Income Tax Officer, Nagpur v. Mahend....