Monday, 14 May 2018

HC : Serving notice to taxpayer's CA not service at all, quashes reassessment proceedings

Chhattisgarh HC allows assessee-company’s writ, quashes re-assessment proceedings for AY 2009-10, as “no notice was served to the petitioner-assessee u/s. 148(1) and service of notice to the Chartered Accountant (‘CA’) of the petitioner Company is not service at all..”; Revenue had issued notice in March 2016 on assessee’s incorrect address which was returned back by the post office, subsequently, notice was served to assessee, through its CA, in April 2016 [i.e. after period of limitation u/s. 149(1)]; Rejects Revenue’s stand that since assessee had participated in the assessment proceedings after service of notice through CA, filed its return and also raised objections, the assessee is deemed to have waived service of notice in view of Sec. 292BB; Refers to the proviso to Sec. 292BB, observes that since assessee submitted its objection to AO regarding the failure to effect service of notice upon it prior to completion of assessment proceedings, Sec. 292BB presumption is not applicable; Relies on Delhi HC ruling in Chetan Gupta, Gauhati HC ruling in Mintu Kalita and Allahabad HC ruling in Laxmi Narain Anand Prakash, moreover HC observes that the notice was served beyond the limitation period u/s. 149(1):HC 

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