Service of reassessment notice to official liquidator upheld where company was under winding up and no separate principal officer notice was required.

Where a company was under winding up and the official liquidator had taken charge, service of reassessment notice under section 148 was not invalid merely because no separate notice under section 2(35)(b) had been issued to treat him as principal officer, since no other principal officer was available and the liquidator participated in the proceedings. The Delhi High Court further held that the Tribunal's conclusion turned on these facts and did not raise any referable question of law, so the references were declined and the questions left unanswered.

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Issues: Whether the notices issued under section 148 of the Income-tax Act, 1961 and served on the official liquidator were invalid for want of a separate notice proposing to treat him as the principal officer under section 2(35)(b), and whether any question of law arose from the Tribunal's order.

Analysis: The company had been ordered to be wound up and the official liquidator had taken charge of its affairs. The record showed that no other principal officer was available to act for the company, the official liquidator participated in the proceedings, and the assessments were completed under section 147. In that factual setting, the Court held that there had been no non-compliance with section 2(35)(b) and that the Tribunal's view upholding service of notice was justified. The Court further held that the conclusions were based on the facts of the case and did not give rise to any question of law.

Conclusion: The references were declined and the questions referred were left unanswered.

Ratio Decidendi: Where an official liquidator is already in charge of the company's affairs and participates in reassessment proceedings, service of notice under section 148 of the Income-tax Act, 1961 is not invalid merely because no separate notice under section 2(35)(b) was issued, and no referable question of law arises if the Tribunal's decision rests on the factual background.

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