Friday, 7 December 2018

ITAT : Rejects 'improper notice service plea' citing authorised representative's 'no objection’ before AO

Pune ITAT rules that service of notice u/s. 143(2) on the manager of assessee-firm and not partners, would not invalidate the assessment proceedings for AY 2010-11; Observes that though the assessee had raised objection before the AO during the course of assessment proceedings itself that the notice was not properly served, the authorized representative (AR) of the assessee appearing before the AO gave his ‘no objection’ for furthering the assessment proceedings; ITAT remarks that “the proviso to section 292BB of the Act, which was triggered by raising an initial objection before the AO, was given a go by and got set to rest by the ld. AR not objecting to such objection in terms of order sheet entry..”; ITAT rules that once the proviso is held to be inapplicable, the main provision of Sec. 292BB gets magnetized, which deems proper service of notice on assessee; Further clarifies that once an assessee empowers his AR to appear in the income tax proceedings and undertakes to ratify his acts, there is no need to ignore any concession made by the ld. AR and personally call upon the assessee to make concession in every case, distinguishes assessee’s reliance on SC ruling in Himalayan Cooperative Group Housing Society on facts:ITAT 

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