1982 (8) TMI 23 - HC - Income Tax

Summary

Issues involved: Validity of service of notice under section 148 and validity of assessment made under section 147.

Validity of service of notice under section 148:
The High Court considered whether the service of notice under section 148 on the assessee was valid. The assessee, a doctor, did not file the return of income under section 139(1) and received a notice under section 148 on 24th May, 1969. The notice was served on a person on 13th June, 1969, and the initials on the office-copy of the notice were not legible. The assessee filed his return on 27th December, 1969, and participated in the assessment proceedings without raising any objection regarding the service of the notice. The Tribunal concluded that even though the notice may not have been personally served on the assessee, since it reached him and he complied with it, the service must be held valid. The High Court agreed with the Tribunal's view, citing relevant legal provisions and precedents.

Validity of assessment made under section 147:
The High Court also examined the validity of the assessment made under section 147. The assessee did not dispute receiving the notice and participated in the assessment proceedings without objection. The High Court held that any procedural irregularity in the service of the notice, such as not being served by the serving officer in person or an authorized agent, did not invalidate the assessment since the notice was received and acted upon by the assessee. The Court referenced a decision by the Gujarat High Court and agreed with the view that procedural irregularities in service cannot invalidate the assessment if the notice was received and acted upon. The Court distinguished other cases cited by the assessee and concluded that the assessment made under section 147 was valid.

The High Court answered the questions raised in the reference by confirming the validity of the service of notice under section 148 and the assessment made under section 147. The assessee was directed to pay the costs of the reference.