By TIOL News Service

NEW DELHI, FEB 21, 2018: THE issue is - Whether deemed service of notice on the authorised representative of the assessee is sufficient to satisfy the requirements of provisions of Sec 143(2). YES is the verdict.

Facts of the case

The Revenue issued notice u/s 143(2) which was dispatched on 18th October, 2006 by registered post. On two occasions the notice sent by registered post could not be served on the Assessee as he was not available and that it was served on the authorized representative of the Assessee on 19th October, 2006. The question that arose in the writ petition was whether in such circumstances the requirement under Section 143(2) of the Income Tax Act, 1961 was met by the Revenue. The High Court answered the question in the negative taking the view that what was required to be satisfied by the Revenue was service of notice and not mere issuance thereof.

On appeal, the SC held that,

++ the non-availability of the Assessee to receive the notice sent by registered post as many as on two occasions and service of notice on 19th October, 2006 on the authorized representative of the Assessee whom the Assessee now disowns is sufficient to draw an inference of deemed service of notice on the Assessee and sufficient compliance of the requirement of Section 143(2) of the Income Tax Act, 1961;

++ we are of the opinion that the High Court was not right in coming to the conclusion in the facts of the instant matter. We, accordingly, allow this appeal and set aside the order of the High Court.

(See 2018-TIOL-68-SC-IT)