Timely service of assessment notice is jurisdictional; posting by registered post on the last day does not ensure valid service.

Service of a notice under section 143(2) had to be effected within the prescribed limitation period for the Assessing Officer to assume jurisdiction. Although the notice was registered-posted on the last permissible date, actual delivery occurred later, and section 27 of the General Clauses Act did not deem timely service on these admitted facts. The Tribunal held that posting alone was not enough where service was not effected within time in the ordinary course of post. The delayed service therefore rendered the assessment invalid and the assessment was cancelled.

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Issues: Whether the assessment was invalid for want of service of the notice under section 143(2) of the Income-tax Act, 1961 within the prescribed limitation period.

Analysis: The return had been filed in August 1994 and the notice under section 143(2) was sent by registered post on the last permissible date, but actual service occurred on a later date. Applying section 27 of the General Clauses Act, 1897, service by registered post is effective when delivery would ordinarily be made in the usual course of post. On the admitted facts, the notice could not be treated as served on the last date merely because it was posted on that date.

Conclusion: Service of notice was beyond limitation, the Assessing Officer lacked jurisdiction to complete the assessment, and the assessment was cancelled.

Ratio Decidendi: For a notice required to be served within a prescribed time, posting it by registered post on the last date does not amount to timely service unless service can be treated as effected within the statutory period in the ordinary course of post.

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