By TIOL News Service:

KOLKATA, DEC 10, 2016: THE ISSUE IS - Whether the attempt of I-T Department to serve notice of proceedings u/s 263 at the old address of assessee, can be considered as a good service of notice. NO IS THE VERDICT.

Facts of the case:

The assessee is a Company, in respect of whom, a proceeding u/s 263 was initiated. The order impugned in these proceedings recorded that two attempts were made for the purpose of service of notice u/s 263 to the assessee. Assessee had submitted that department had attempted service of notice at an old address. It had also submitted that the department was informed of the change of address prior to the initiation of the proceedings u/s 263.

On appeal, the HC held that,

++ In the instant case the department has not served notice on the petitioner. Two attempts to serve the petitioner where at an address which was not the prevailing address of the petitioner at the material point of time. Two attempts to serve on the old address therefore cannot be counted as a notice u/s 263. Although the impugned order records that, not finding the petitioner at the old address a notice was affixed on such address. For the affixture of notice to take effect it must be shown that, an attempt was made to serve the notice at the last known address of the assessee. Assessee informed the department as to its address before the initiation of proceeding. Therefore it was obligatory on the part of the department to attempt to serve notice at the new address. Not having done so the attempts of the department to serve at the old address and claim good service on the basis of affixture of notice at the old address, in my view, cannot be upheld as a good service. In such circumstances, the department did not comply with the provisions of Section 263 by serving proper notice thereunder on the petitioners.

(See 2016-TIOL-2974-HC-KOL-IT)