The Hon’ble Supreme Court of India, on 13thAugust 2019, in the matter of Commissioner of Income Tax v. Laxman Das Khandelwal pronounced that Section 292BB of the Income Tax Act, 1961 only seeks to cure the infirmities in the manner of service of notice, however, it does not sve complete absence of notice as required u/s Section 143(2).
The Hon’ble Supreme Court observed that:
According to Section 292BB of the Income Tax Act, 1961 , if the assessee had participated in the proceedings, by way of legal fiction, notice would be deemed to be valid even if there be infractions as detailed in said Section. (Para 9)
The scope of Section 292BB of the Income Tax Act, 1961 is to make service of notice having certain infirmities to be proper and valid if there was requisite participation on part of the assessee. It is, however, to be noted that the Section does not save complete absence of notice. (Para 9)
For Section 292BB to apply, the notice must have emanated from the department. It is only the infirmities in the manner of service of notice that the Section seeks to cure. The Section is not intended to cure complete absence of notice itself. (Para 9)
Copy of judgement: Judgement_13-Aug-2019
-Adv. Tushar Kaushik