HC justified reassessment as notice handed over to tenants who later forwarded it to assessee was a valid act

Case details: Perumallur Vankipuram Janardhanan v. ITO - [2021] 128 taxmann.com 179 (Madras)

Judiciary and Counsel Details

• • T.S. Sivagnanam and Ms. R.N. Manjula, JJ.
  • N.V. Balaji for the Appellant.
  • Karthik Ranganathan, SSC for the Respondent.

Facts of the Case

Assessee contended that notice issued under Section 148 was never served on him. Failure to serve the same within a reasonable period at least before completing the assessment would result in the assessment being void. He further contended that the assessment made by Assessing Officer (AO) was invalid. It was made pursuant to a notice issued by the Income-tax Officer at Delhi, who does not have jurisdiction over assessee’s case. He was lack of opportunity, and there was a violation of the principles of natural justice.

Revenue contended that the ITO having jurisdiction over assessee had transferred the assessee’s case to the ITO who has issued notice to assessee. Revenue further submitted that the inspector of Income Tax visited the last known address of assessee to verify his address and found that the address belonged to assessee. The house was let out, and the tenants informed him that they have been receiving the notices from the Department and forwarding them to assessee. The tenants could not give the latest address of assessee. Therefore, the proceedings have been initiated properly.

ITAT Held

On appeal, ITAT remitted the matter back to the file AO for fresh adjudication. On further appeal, Madras High Court held that there was no good ground made out by assessee to interfere with the order passed by ITAT. There was no question of law, much less substantial question of law arising for consideration in the appeal. Accordingly, the appeal filed by assessee was dismissed.

Case Review

• • Perumallur Vankipuram Janardhanan v. ITO [IT Appeal 144 (Hay.) of 2020, dated 31-1-2020] (para 10) affirmed.