TaxTMI 
TaxTMI 
2023 (12) TMI 538
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....assessment framed vide order dated 26.12.2016 is bad in the eyes of law. 3. For that the ld. CIT(A) was not justified in confirming the addition of Rs. 10,19,518/- made by the AO on account of alleged bogus loss. 4. The appellant craves leave to add further grounds of appeal or alter the grounds at the time of hearing." 2. Assessee is a private limited company engaged in the business of trading of shares and securities earning its income of Rs. 17,231/- for A.Y. 2009-10. Subsequently, the ld. AO received information that the assessee has taken contrived losses of Rs. 10,19,518/- and shifted out profits during the F.Y. 2008-09. Accordingly, notice u/s 148 of the Act dated 31.03.2016 was issued and dispatched on 04.04.2016 which was received by the assessee on 05.04.2016. As per assessment order, it was noticed that no one turned up against the notice issued by the AO and the ld. AO framed assessment order u/s 144/147 of the Act by making an addition of Rs. 10,19,518/- in the hands of assessee. 3. Dissatisfied with the above order, assessee went into appeal before the ld. CIT(A) where the appeal of the assessee was dismissed. 4. Feeling aggrieved by the abo....
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....ice 149(1). No notice under section 148 shall be issued for the relevant assessment year - (a) if four years have elapsed from the end of the relevant assessment year, unless the case falls under clause (b); (b) if four years, but not more than six years, have elapsed from the end of the relevant assessment year unless the income chargeable to tax which has escaped assessment amounts to or is likely to amount to one lakh rupees or more for that year. Explanation - In determining income chargeable to tax which has escaped assessment for the purposes of this sub-section, the provisions of Explanation 2 of section 147 shall apply as they apply for the purposes of that section. (2) The provisions of sub-section (1) as to the issue of notice shall be subject to the provisions of section 151." Thus, it is clear from the above provision that the maximum time limit for issuance of notice under section 148 for reopening the assessment is six years from the end of the relevant assessment year. In the instant case, the relevant assessment year is 2011-12; the limitation of six years for initiation of reassessment proceedings expired on 31.....
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....arry out the intent for which the statute was enacted and not a mirror image type of strict compliance. Substantial compliance means "actual compliance in respect to the substance essential to every reasonable object of the statute" and the court should determine whether the statute has been followed sufficiently so as to carry out the intent of the statute and accomplish the reasonable objectives for which it was passed. 33. A fiscal statute generally seeks to preserve the need to comply strictly with regulatory requirements that are important, especially when a party seeks the benefits of an exemption clause that are important. Substantial compliance with an enactment is insisted, where mandatory and direct recruitment requirements are lumped together, for in such a case, if mandatory requirements are complied with, it will be proper to say that the enactment has been substantially complied with notwithstanding the non- compliance of directory requirements. In cases where substantial compliance has been found, there has been actual compliance with the statute, albeit procedurally faulty. The doctrine of substantial compliance seeks to preserve the need to comply strictly....
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....cessary to examine the true import of the expression "shall be issued" as employed in section 149 of the Act. 15. The expression 'issue' has been defined in Black's Law Dictionary to mean "To send forth; to emit; to promulgate; as, an officer issues orders, process issues from court. To put into circulation; as, the treasury issues notes. To send out, to send out officially; to deliver, for use, or authoritatively; to go forth as authoritative or binding. When used with reference to writs, process, and the like, the term is ordinarily construed as importing delivery to the proper persons, or to the proper officer for service etc, 15.1 In P. Ramanathan Aiyer's Law Lexicon the word 'issue' has been defined as follows:- "Issue. As a noun, the act of sending or causing to go forth; a moving out of any enclosed place; egress; the act of passing out; exit, egress or passage out (Worcester Dict.); the ultimate result or end. As a verb, "To issue" means to send out, to send out officially; to send forth; to put forth; to deliver, for use, or unauthoritatively; to put into circulation; to emit; to go out (Burrill); to go forth as a....
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....s prescribed under section 282 r/w rule 127 of the Income Tax Rules prescribing the mode of service of notice under the Act. The signing of notice would not amount to issuance of notice as contemplated under section 149 of the Act. In other words, the requirement of issuance of notice under section 149 is not mere signing of the notice under section 148, but is sent to the proper person within the end of the relevant assessment year. 13. Concededly, the notice dated 31.03.2018 issued by the respondent was served on the appellant through mail, only on 18.04.2018. Though the learned senior panel counsel appearing for the respondent produced the relevant pages of notice server book maintained by the department to show that the notice of the respondent dated 31.03.2018 under section 148 is within the limitation period, but the same only disclosed that the notice dated 31.03.2018 was returned on 06.04.2018. Further, the decision in Aban Offshore Limited case (supra) relied on the side of the respondent, is of no assistance, wherein, the postal cover showed that the franking was made on 01.04.2015, but the 'business post arrangement' between the Income Tax Department and....