The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT), refused the assessment order on the basis that no action has been made by Assessing Officer (AO) to send the draft assessment order to rectify the address.
The taxpayer is the owner of DSV Solutions Pvt ltd and it is since the assessing officer does not proceed draft assessment order or prior to the date, therefore the assessment order would be limited to time. There would be a revision of address for the case and the taxpayer has told the new address to the assessing officer. Through the notice as proof provided under section 142(1), the taxpayer said that the notice was sent to the new address.
AO has issued the two draft assessment orders however both of these draft assessment orders comprise the older address of the taxpayer, the no effect is furnished for the intimation of the change of address.
The 1st draft assessment order consists of the two additions to the returned income and is specified to be served to the taxpayer via speed post. The 2nd draft assessment order comprises the 3 additions to the returned income and would specify to be served on the taxpayer.
There are no draft orders as per the taxpayer, which were forwarded via the assessing officer to the taxpayer in the permissible time durations. These orders would be restricted to the time.
The use of the old address justification is not satisfactory within the legally sustainable merits. The taxpayer’s lapse in the updation of the PAN database does not verify the service of the notice of the old address, provided that the need of the proviso to rule 127 of Income Tax Rules, 1962 is fulfilled by furnishing the address to the council related to the communication address. For any matter, the PAN database would be one of the choices in statute 127(1) of the Income Tax Rules, 1962.
A Bench comprises of Pramod Kumar, Vice President, and, Pavan Kumar Gadale, Judicial Member saw no forwarding effort is there for the draft assessment order to the correct address, or at least the address filed to the Assessing Officer under proviso to rule 127(2), within the allotted duration under Section 153 r.w.s 144C of the Income Tax Act, 1961. For a smaller reason, the impugned assessment fails.
| Case Title | DSV Solutions Pvt Ltd vs Deputy Commissioner of Income Tax Circle 11(1)(2) |
| Citation | ITA No. 7597/Mum/2019 |
| Date | 09.11.2022 |
| Counsel for Appellant | J D Mistry, Sr, Paras Savla and Harsh Shah |
| Counsel for Respondent | Dr Yogesh Kamat and Soumendu Kumar Dash |
| Mumbai ITAT | Read Order |
