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(3) The tribunal has erred in holding that even if the notice under Section 158BC of the Act was not served on the appellant, it amounts to a mere procedural irregularity which can be rectified and is not an illegality. The tribunal has erred in relying upon the judgment of the Bombay High Court in Shirish Madhukar Dalvi versus Assistant Commissioner of Income Tax, [2006] 287 ITR 242, whereas there is a contrary binding judgment of the jurisdictional Delhi High Court in ITA No. 411/2004 dated 16th August, 2004 titled Commissioner of Income Tax versus N.K. Parwanda.

16. Reliance placed on the order of this Court dated 16th August, 2004 in the case of N.K. Parwanda (supra) is misconceived. In the said case notice for initiation of the block assessment proceedings was sought to be served at the address which was different from the address where the search was carried out. Notice was issued at the earlier or old address of the assessee, where he was not residing. Notice was accordingly returned with the remarks of the postal authorities, "addressee left". Thereafter, the Assessing Officer did not bother to send/issue fresh notice at the correct address. Subsequently, assessee attended the proceedings but maintained that he had not received the notice for block assessment. The High Court dismissed the appeal, inter alia, recording as under:-