Assessee challenged the reopening notice, primarily on the ground that Notice was not served as per S.  282 of the IT Act. The addition was also challenged on merits, as reason to believe itself was based on wrong footing as power to reopen was exercised mechanically without examining the records.

The department on the other side argued that non-receipt is not equivalent to non-service, without producing any records or documents to counter the assessee’s objections.

On appeal the Tribunal held that :

• As the notice was never served on the assessee, nor the Revenue authorities have given any finding specifying the mode and manner of issuance of notice/s 148, the jurisdiction for reassessment based on such notice is bad in law and be restored to nullity.
• Even on merits as assessee having sufficiently explained the facts right at the assessment stage, and no infirmity in the evidences relied upon and available on record has been pointed out, assessee is entitled to relief on merits too.

•       Also reopening u/s 148 based on mechanical satisfaction of PCIT without application of mind deserves to be quashed, as an authority vested with onerous powers of reopening u/s 147 and granting of approval is expected to exercise its power consciously, carefully and with full awareness. The public at large cannot be put to the mercies of careless, casual, arbitrary or whimsical exercise of power. (AY. 2010-11)