IMPORTANT POINT
Mere mentioning of the new address in the return of income without specifically intimating the Assessing Officer with respect to change of address and without getting the PAN database changed, is not enough and sufficient.

JUDGMENT :

M.R. SHAH, J.

1. Leave granted.

2. Feeling aggrieved and dissatisfied with the judgment and order dated 27.06.2018 passed by the High Court of Judicature at Bombay in Income Tax Appeal No. 94 of 2016, by which the High Court has dismissed the said appeal preferred by the Revenue and has confirmed the orders passed by the learned C.I.T. (Appeals) as well as I.T.A.T. quashing and setting aside the assessment order for A.Y. 2006-07, the revenue has preferred the present appeal.

3. That the respondent-assessee filed return of income for the Assessment Year 2006-07 on 28.11.2006 declaring total income of Rs. 3,38,71,716/-. The said return was filed under E-Module Scheme and thereafter a hard copy of the same was filed on 05.12.2006. The return of income was accompanied with balance sheet and profit and loss account. The return was processed under Section 143(1) of the Income Tax Act, 1961 (hereinafter referred to as the ‘1961 Act’). That a notice under Section 143(2) of the 1961 Act was issued to the respondent-assessee on 05.10.2007. The notice was sent at the assessee’s address available as per the PAN database. That a further opportunity was provided to the assessee vide notice under Section 143(2) of the 1961 Act on 25.07.2008. The said notice was also issued to the assessee at the available address as per the PAN database. That thereafter, further notices under Section 142(1) of the 1961 Act were issued to the assessee on 23.01.2008, 25.07.2008 and 05.10.2008 along with questionnaires calling for various details and were duly served on the respondent-assessee company. In response to the said notice, the representative of the company appeared on 28.11.2008 and 04.12.2008. The assessee participated in the proceedings before the Assessing Officer. However, the assessee challenged the notice under Sections 143(2) and 142(1) of the 1961 Act on the ground that the said notices were not served upon the assessee as the assessee-company never received those notices and the subsequent notices served and received by the assessee-company were beyond the period of limitation prescribed under proviso to Section 143 of the 1961 Act.

3.1 That the Assessing Officer vide assessment order dated 24.12.2008 completed the assessment under Section 143(3) of the 1961 Act by making disallowance of Rs. 8,91,17,643/- under Section 14A of the 1961 Act, read with Rule 8 of the Income Tax Rules and computed total income at Rs. 5,52,45,930/-.

3.2 Being aggrieved by the assessment order dated 24.12.2008, the assessee preferred appeal before the learned C.I.T. (Appeals). The learned C.I.T. (Appeals) allowed the appeal vide order dated 23.12.2010 holding, inter alia, that the Assessing Officer completed the assessment under Section 143(3) of the 1961 Act, without assuming valid jurisdiction under Section 143(2) of the 1961 Act, and therefore, the assessment framed under Section 143(3) of the 1961 Act was invalid. The learned C.I.T. (Appeals) observed that as the subsequent service of notice under Section 143(2) of the 1961 Act was beyond the period of limitation prescribed under the proviso to Section 143 of the 1961 Act and earlier no notices were served upon the assessee and/or received by the assessee as the same were sent at the old address and in the meantime company-assessee changed its address and therefore the assessment order was bad in law. The Revenue preferred appeal before the Income Tax Appellate Tribunal, which came to be dismissed by the learned I.T.A.T. vide order dated 19.01.2015. The order passed the learned C.I.T. (Appeals) as well as I.T.A.T. have been confirmed by the High Court, by the impugned judgment and order. Hence, the Revenue has preferred the present appeal.

4. Shri H. Raghavendra Rao, learned Advocate appearing on behalf of the Revenue has vehemently submitted that the impugned judgment and order passed by the High Court dismissing the appeal and thereby confirming the orders passed by the learned C.I.T. (Appeals) and I.T.A.