Valid service through an agent was upheld after the assessee acknowledged notice and sought more time.

Service of notice under section 158BC remained valid where it was served on the assessee's chartered accountants and the assessee later acknowledged the notice by seeking additional time to file returns. That subsequent conduct amounted to ratification of the service and estopped the assessee from denying compliance with the statutory notice requirement. The discharge order was held to have ignored the admitted service and its legal effect, so it was set aside. The revision petitions were allowed and the matters remitted to the trial court for fresh disposal.

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Issues: Whether service of notice under section 158BC of the Income-tax Act, 1961 on the respondents' chartered accountants amounted to valid service on the respondents, and whether the discharge under section 245(2) of the Code of Criminal Procedure, 1973 was justified.

Analysis: The search and seizure proceedings were followed by issuance of notice under section 158BC requiring the filing of returns within the stipulated period. The notices were served on the respondents' chartered accountants, and the respondents later addressed letters seeking further time to file the returns, thereby acknowledging knowledge of the notices. On those facts, the service could not be treated as invalid merely because it was effected through the chartered accountants. The respondents' subsequent acknowledgment and request for time amounted to ratification of the service, and they were estopped from disputing compliance with the notice requirement. The discharge order was therefore found to have overlooked the admitted service and the legal effect of such acknowledgment.

Conclusion: Service of notice was held to be valid, and the discharge order was set aside. The revision petitions were allowed and the matters were remitted to the trial court for fresh disposal.

Ratio Decidendi: Where notice is served on an agent or representative and the assessee later acknowledges the notice or seeks time on that basis, the service is valid and the assessee is estopped from denying compliance with the statutory notice requirement.

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