Income Tax notices can be sent to old address - SC
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In an important judgement recently, the Supreme Court has made it clear that the notice sent to the wrong address of the assessee due to non-updating of new address in PAN is not ‘bad in law.’
This is a major relief for the Income Tax Department. With this, it has set aside orders passed by the High Court, Commissioner of Income Tax (CIT-Appeals) and the Income Tax Appellate Tribunal ITAT), holding the assessment order bad in law on the ground that notices were served at the old address.
“We are of the opinion that mere mentioning of the new address in the return of income without specifically intimating the Assessing Officer with respect to change of address and without getting the PAN database changed, is not enough and sufficient,” a division bench of Justice M R Shah, Justice U U Lalit and Justice Indira Banerjee said.
It added that in absence of any specific intimation to the Assessing Officer, with respect to the change in the address and/or change in the name of the assessees, the Assessing Officer would be justified in sending the notice at the available address mentioned in the PAN database of the assessee, more particularly when the return has been filed under EModule scheme.
The bench mentioned that notices under section 143(2) of the Income Tax Act are issued on selection of case generated under automated system of the Income Tax Department which picks up the address of the assessee from the PAN database.
“The change of address in the database of PAN is must., in case of change of the name of the company and/or any change in the registered officer of the corporate office and the same has to be intimated to the Registrar of Companies in the prescribed format (Form 18) and after completing with the said requirement, the assessee is required to approach the Department with the copy of the said document and the assessee is also required to make an application for change of address in the departmental database of the PAN, which in the present case the assessee has failed to do so,” the bench said. #casansaar (Source - The Hindu Business Line)
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