TaxTMI 
TaxTMI 
2021 (4) TMI 889
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....Database to ascertain the correct address of the appellant. Your appellant therefore prays that the assessment/reassessment complete in mechanical order by the Ld. AO be quashed as being null and void. 2. In the facts and circumstances of the case and in law, the Ld. CIT(A) erred in not appreciating the fact that the impugned notice issued by the Ld. Assessing officer u/s 148 and u/s 142(1) was never received by the Appellant and therefore he was prevented by reasonable and sufficient cause for non compliance of the aforesaid notices. Your appellant therefore prays that the assessment/reassessment completed without serving the notice u/s 148/142(1) be quashed as being null and void. 3. In the facts and circumstances of the case and in law the Ld. Commissioner of Income Tax (Appeals) erred in confirming the assumption and presumption of the basic income at Rs. 1,60,000/- and addition of Rs. 16,74,860/- thereto made by the Ld. Assessing Officer u/s 69A on account of cash deposited by the appellant during the year. Your appellant therefore prays that the assessment/reassessment completed by the Ld. AO merely on the basis of assumptions and ....
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....8.08.2018 was issued by the A.O wherein the assessee was called upon to furnish certain details latest by 12.09.2018. However, the said notice too was returned unserved. In the backdrop of the aforesaid facts the A.O issued a letter under Sec. 133(6) to the branch manager, Cosmos Co-operative Bank Ltd., Branch : Ghatkopar, Mumbai, and called for certain information. However, as stated in the assessment order no reply was received from the bank upto the date of framing of the assessment under Sec. 144 r.w.s 147, dated 10.11.2018. As the notices issued u/ss. 148/142(1) could not be served upon the assessee thus, the A.O, is stated to have effected service of the said notices through affixture at the last known address of the assessee. However, as the assessee despite having been afforded sufficient opportunity failed to put up an appearance in the course of the proceedings before him, the A.O, being of the view that the assessee was not interested in prosecuting the assessment proceedings framed the assessment to the best of his judgment, vide his order passed under Sec. 144 r.w.s 147, dated 10.11.2018 and treated the cash deposits of Rs. 16,74,860/- in the assessee's saving bank acc....
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....time was trading in cloth fabric. It was submitted by the ld. A.R that the assessee had way back filed his last income-tax return for A.Y. 2005-06, and thereafter, as his annual income in the subsequent years remained substantially below the basic exemption limit thus, no return of income for the said years was filed by him. It was averred by the ld. A.R that the residential address of the assessee was viz. "Building No.59, Room No. 1764, Sagar Housing Society, Pant Nagar, Ghatkopar-(W), Mumbai 400075" and it was never changed during his life time. It was submitted by the ld. A.R that though the address borne on the notice under Sec. 148 (as gathered from a perusal of the records) was correctly stated however, that mentioned in the assessment order and also the other notices, viz. "Goswami 1-2 Sapna Apartment, 3rd Floor, LBS Marg, Ghatkopar - (W), Mumbai - 400 086" was an incorrect address. It was further stated by the ld. A.R that although it was the claim of the revenue that the notice issued under Sec. 148, dated 21.03.2018 was uploaded electronically on the portal of income-tax, however, the service of the same by the said means was incomprehensible as the assessee did not have....
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....e ld. D.R that the assessee had wrongly claimed that no notice under Sec. 148 was served upon him. On merits, it was submitted by the ld. D.R that as the assessee had failed to substantiate the source of the cash deposits in his bank account thus, the A.O, had rightly added the same as his unexplained money within the meaning of Sec.69A of the Act. 6. We have heard the authorized representatives for both the parties, perused the orders of the lower authorities and the material available on record. As the assessee has assailed the validity of the assessment, for the reason, that de hors service on the assessee of a notice under Sec. 148 the assessment framed under Sec. 144 r.w.s 147, dated 10.11.2018 cannot be sustained and is liable to be vacated, we shall, thus, first advert to and therein deal with the said issue first. As per Section 148 of the Act, the A.O before making an assessment, reassessment or recomputation under Sec.147, shall serve on the assessee a notice requiring him to furnish within the stipulated time period as may be specified in the notice, a return of his income for the previous year corresponding to the relevant assessment year, in the prescribed form and ....
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....other communication." 127, (1) For the purposes of sub-section (1) of section 282, the addresses (including the address for electronic mail or electronic mail message) to which a notice or summons or requisition or order or any other communication under the Act (hereafter in this rule referred to as "communication") may be delivered or transmitted shall be as per sub-rule (2). (2) The addresses referred to in sub-rule (1) shall be (a) for communications delivered or transmitted in the manner provided in clause (a) or clause (5) of sub-section (1) of section 282- (i) the address available in the PAN database of the addressee; or (ii) the address available in the income-tax return to which the communication relates; or (iii) the address available in the last income-tax return furnished by the addressee; or (iv) in the case of addressee being a company, address of registered office as available on the website of Ministry of Corporate Affairs: Provided that the communication shall not be delivered or transmitted to the address mentioned in items (i) to (iv) where the addressee furnishes in writing any othe....
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....hority. (3) The Principal Director General of Income-tax (Systems) or the Director, Gene of Income-tax (Systems) shall specify the procedure, formats and Standard, for ensuring secure transmission of electronic communication and shall also responsible for formulating and implementing appropriate security, and retrieval policies in relation to such communication.]" In the backdrop of the mode and manner of service of a notice contemplated in Sec. 282 r.w Rule 127, we shall now test as to whether the Notice issued under Sec. 148, dated 21.03.2018 was validly served upon the assessee prior to framing of the assessment under Sec. 144 r.w.s 147, dated 10.11.2018. As is discernible from the assessment order, we find that it is a matter of fact borne from the record that the notice issued by the A.O under Sec. 148, dated 21.03.2018 and that issued under Sec. 142(1), dated 28.08.2018 were both returned unserved. As observed by us hereinabove, it is stated by the A.O that as the notice under Sec. 148 could not be served upon the assessee thus, the same, was served through affixture at the last known address of the assessee. Rebutting the aforesaid claim of the A.O, it is stated ....
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....n the case before us, nothing has been placed on record which would reveal that the A.O had got the notice issued under Sec. 148, dated 21.03.2018 served through affixture at the last known address of the assessee. In fact, as observed by us hereinabove, the fact that the A.O had referred to an incorrect address of the assessee in the body of the assessment order itself militates against the aforesaid unsubstantiated claim of the A.O of having carried out a valid service of the notice issued under Sec. 148, dated 21.03.2018 through affixture at the last known address of the assessee. In the backdrop of the aforesaid facts, we are unable to persuade ourselves to subscribe to the validity of the service by affixture of the notice issued under Sec. 148, dated 21.03.2018, as had been claimed by the A.O in the assessment order. 8. Insofar the claim of the A.O that the notice issued under Sec. 148 was sent to the assessee through ITBA on 21.03.2018 is concerned, the same is found contrary to the facts borne from the record. Before us, the revenue had relied upon a letter received from the ITO- 27(2)(1), Mumbai, dated 21.01.2021 and therein claimed that the notice issued under Sec. 148....
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....ed under Sec.148, dated 21.03.2018 had also not been served by the department by electronic mode. 9. As observed by us hereinabove, the assessee who had filed his last income-tax return for A.Y. 2005-06 had therein in his said return clearly stated his address viz. "Bldg 59, R. No. 1764, Sangam Housing Society Pant Nagar, Ghatkopar, Mumbai - 400075". In the backdrop of the aforesaid fact, the A.O as per Sec. 282 r.w Rule 127(2)(a)(iii) of the Income Tax Rules, 1962 was obligated to have served the notice under Sec. 148 at the aforesaid residential address of the assessee that was duly available with him. Apart from that, as per Sec. 282 r.w Rule 127(2)(a)(i) the A.O could have validly served the notice issued under Sec. 148, dated 21.03.2018 at the aforesaid address of the assessee that was also available in his PAN database. Further, on a perusal of the details furnished by the assessee before us, we find that pursuant to the notice issued by the A.O under Sec. 133(6), dated 11.07.2018 to the assessee's bank viz. Cosmos Cooperative Bank Ltd, Branch: Ghatkopar (W), Mumbai, the latter vide its letter dated 30.07.2018 had furnished with him the complete details of the assessee, vi....