Question before the Court was “Whether the Income Tax Appellate Tribunal is justified in law in holding that service of notice at the factory premises of the Assessee on the security guard was not proper service under the provisions of Section 282(2) of the Income Tax Act, 1961?” After considering the various case laws on the subject the High Court answered the question in favour of the revenue and held that , the assessment proceedings under Section 147/148 of the Act are not invalid or void for want of proper service of notice. However, an order of remand is required to be passed as the Tribunal has not adjudicated and decided the appeal filed by the respondent-assessee on merits. ( ITA No. 805/2005, dt. 31.05.2018)( AY.1995 -96)
CIT v. Sudev Industries Ltd ( 2018)405 ITR 325 /167 DTR 297/ 256 Taxman 317/ 304 CTR 338 (Delhi)(HC), www.itatonline.org.Editorial: SLP of assessee is dismissed, Sudev Industries Ltd v CIT ( 2018) 259 Taxman 221 ( SC)
S. 282 : Service of notice –Reassessment-Service of notice at the factory premises of the Assessee on the security guard was held to be valid ,though “service” of notice u/s 147/148 is not a mere procedural requirement, but a condition precedent for initiation of proceedings, the service upon a person who was not authorized to receive notice does not render the proceedings null and void if the assessee complied and entered appearance [ S. 148 , 254(1),292B ]