Case: – PCIT v/s Dart Infrabuild (P) Ltd.; ITA/10/2022
Recently Delhi High Court consider the 2 aspects in the case between the PCIT Vs. Dart Infrabuild (P) Ltd.
I. The notice served u/s 148 was improper as it was served and old address of the respondent assessee despite the Appellant had knowledge about the same.
II. Weather the Appellant department was in obligation to mandatorily serve a notice u/s 143(2) of the Income Tax Act, 1962 before passing the assessment order.
With regard to first issue the court found that the notice issued u/s 148 of the act was directed to the old address, despite the knowledge of the new address of the respondent assessee. The appellant argued in this against that Section 292BB will apply and it would deem the notice served if the assessee failed to object the same. However, Tribunal failed to appreciate the scope and ambit of the provisions of Section 292BB of the act, and High Court rejected this argument.
With regard to second issue High Court held that the only reason not issue the notice under Section 143(2) of the Act is that the ROI was not filed within the thirty (30) days provided via the notice dated 30.03.2015 issued under Section 148. This argument does not impress us because if we were to hold [as we have], that the said notice was directed towards the wrong address, the respondent/assessee could have not adhered to the timeline provided in the said notice. The absence of notice, under Section 143(2), impregnates the proceedings with a jurisdictional defect and, hence, renders it invalid in the eyes of the law.
Accordingly, High Court closed the appeal observing there is no substantial question of law.

Author of this article:
Adv. Ravish Bhatt,
Partner, R&D Law Chambers,
Dual Qualified Lawyer Solicitor | International Tax Affiliate

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