The reassessment proceedings under section 147/148 of the Income Tax Act are invalid if the Assessing Officer fails to prove that the notice under section 148 was issued within the limitation period prescribed under section 149.

ORDER

PER SUDHIR KUMAR, JUDICIAL MEMBER:

This appeal by the assessee is directed against the order dated 11.3.2016 of the Ld.Commissioner of Income Tax (Appeals-9), New Delhi [hereinafter referred to as “Ld.CIT(A))”] pertaining to A.Y. 2007-08.

2. The assessee has raised as many as 19 grounds of appeal, but however, he only argued following the Ground No. 1, 3 & 4 which are interconnected to each other:-

1. That the notice issued u/s. 148 and reassessment proceedings initiated u/s. 147 is bad in law, without jurisdiction and barred by time limitation. The CIT(A) erred in upholding the same.

2. That no notice u/s. 147 r.w.s. 147 of the Act was issued and served on the assessee company, hence, the proceedings u/s. 148 is illegal, without jurisdiction and barred by limitation. The CIT(A) erred in upholding the same.

3. That, the CIT(A) has erred in observing, that, the notice u/s. 148 has been properly served through affixture without appreciating the fact that no notice has ever been issued within time limitation as per the provision of section 149 of the Act.

2. The brief facts relating to the issue are that the proceedings u/s 147 were initiated and after recording the decision and with the previous approval of Addl. Commissioner of Income Tax, Range-16, Delhi accorded by letter filed No Addl. CIT Range-16, 2013-14/928 dated 28.03.2014 notice u/s 148 was issued in this case. The AO further mentioned the notice u/s 148 was issued on 28.03.2014 which was sent by speed post acknowledgment no. Ed-137317219IN, which was received that unserved from the postal authorities. This notice has been sent at the address as provided by the assessee in its latest E-file ITR for the A.Y. 2013-14. i.e. at 36, ground floor, Hargovind Enclave, Vikas Marg, New Delhi. A copy of the said notice was got serve through a fixture made by a notice served, Mr. Rajinder Kumar, in the presence of Inspector of Income tax, Mrs. Kusumlata Pawar, as per their reports placed on record. In response to vide letter dated 28.01.2015 filed in the office dated 12.02.2015 the assessee requested to treat the ¡returned originally filed on 30.10.2007 as having been filed in responsible notice u/s 148.

2.1 During the course of appellate proceeding the assessee has submitted written submission on these grounds which are briefly are as under:-

• Filed its written submission that assessee has filed its returned of income in A.Y. 2007-08 declaring a loss of Rs. -495757/- and same was processed u/s 143(1) of the Income Tax Act, 1961 on 03.03.2009. Further the issue was noticed u/s 142(1) on 16.01.2015 received 28.01.2015 fixing the hearing on 28.01.2015.

• The assessee assessee replied the nonce 16.01.2015 vide letter dated 28.01.2015 no proceeding is pending in the case of the assessee for the relevant year. As no notice u/s 148 was ever served on the assessee.

• The AO has passed an order dated 20.02.2015 disposing of the objection even without the supplying the reason recorded to the assessee. The AO states that the notice u/s 148 was served through speed post which was received back unserved. The assessee raised the objections to the reasons recorded and to initiation of the reopening u/s 147 read with section 148 of the act vide letter dated 05.03.2015. in the objection the assessee raised the objection that no notice u/s 148 was issued served on the assessee. Further, it is also mention that reopening proceeding has been initiated at the behest of ADIT, (lnvestigation)(Unit-lll), New Delhi and not the violation of the assessing officer.

• The assessee further submitted that the AO provided the details of the postal service’s after bowing through the details of postal services it has been found that the postal on alleged acknowledgment 137317219IN was booked on 10.03