- (1.) This order shall dispose of ITA Nos. 292, 460, 461 and 462 of 2008 as, according to the learned counsel for the parties, the common questions of law are involved therein. For brevity, the facts are being taken from ITA No. 292 of 2008.
(2.) This appeal has been preferred by the revenue under section 260A of the Income-tax Act, 1961 (in short the Act) against the order dated 6-7-2007 passed by the Income-tax Appellate Tribunal, Amritsar Bench, Amritsar (hereinafter referred to as the Tribunal) in ITA Nos. 638 and 634/ ASR/2004, for the assessment year 1998-99, claiming the following substantial questions of law :- (i) Whether in the facts and circumstances of the case the Hon'ble ITAT was right in law to hold that the service of notice under section 148 was invalid and, therefore, it was not correct in quashing the assessment orders on the said grounds? (ii) Whether assessment order can be termed invalid merely by the reason of any mistake or omission in service of notice when section 292B of Income-tax Act, 1961 states that if the proceeding is in substance and effect in conformity with or according to the intent and purpose of Income-tax Act, 1961, the assessment proceedings cannot be termed invalid merely by reason of any mistake, defect or omission in the notice?
(3.) Briefly stated, the facts necessary for adjudication as narrated in the appeal are that the assessee filed return on 26-11-1998 declaring nil income after adjusting brought forward losses of Rs. 8671. The said return was processed under section 143(1)(a) on 30-8-1999 granting refund of Rs. 3,50,280 including interest under section 244A of the Act at Rs. 50,881. Thereafter, notice under section 148 of the Act was issued to the assessee on 12-3-2003. In response thereto, the assessee filed its return on 23-2-2004 declaring nil income and the assessment was completed vide order dated 17-3-2004 at a total income of Rs. 95,90,410 by making additions under the following heads :- Sr. No. Heads Amount 1. Sale of Vehicles Rs. 22,76,962 2. Sale of Spare Parts Rs. 7,57,642 3. Evasion of sales-tax on bogus RD sales Rs. 22,47,560 4. Servicing of vehicles Rs. 43,08,570;