Assessment : Notice u/s.143(2) of Income-tax Act, 1961 : Service : A.Y. 2001-02 : Service of notice by affixture on last day after office hours : Not valid service : Assessment not valid.

Reported :

32. Assessment : Notice u/s.143(2) of Income-tax Act, 1961 : Service : A.Y. 2001-02 : Service of notice by affixture on last day after office hours : Not valid service : Assessment not valid.

[CIT v. Vishnu and Co. P. Ltd., 319 ITR 151 (Del.)]

For the A.Y. 2001-02, the assessee had filed the return of income on 28-9-2001. A valid notice u/s. 143(2) of the Income-tax Act, 1961, was required to be served on or before 30-9-2002. On 30-9-2002, the Assessing Officer issued a notice u/s.143(2) and got it served by affixture on the office premises of the assessee after the office hours on that day. The Tribunal cancelled the assessment made pursuant to the said notice holding that there was no valid service of notice u/s.143(2) within the prescribed period.

In appeal, the Revenue contended that the assessee having appeared in the assessment proceedings it should be treated as a valid notice. The Delhi High Court upheld the decision of the Tribunal and held as under :

“(i) S. 143(2) of the Income-tax Act, 1961, is a mandatory provision whether from the standpoint of a regular assessment or from the standpoint of an assessment under Chapter XIV-B.

(ii) The Revenue could not disclose as to when the assessee had appeared, namely, whether the assessee had appeared on October 10, 2002, pursuant to the affixation or on a later date after the alleged service of the subsequent notice. Even such appearance by the assessee, on a date when the proceedings had become time-barred because of no proper service of notice, would be of no consequence.”