Deemed service by registered post and limited scope of section 64 preserved assessments despite refusal of notice.
Section 64 of the Indian Income-tax Act applies only to the place of assessment where jurisdiction otherwise exists; it does not govern a claim that no Income-tax Officer had jurisdiction at all, so failure to refer that issue to the Commissioner did not vitiate the assessment. Service of notice by registered post is valid where the notice is properly addressed and sent to the correct address, and refusal by the addressee does not defeat deemed service under section 27 of the General Clauses Act, 1897. On that reasoning, the assessments remained valid.
Issues: (i) Whether any question under section 64 of the Indian Income-tax Act arose on the facts so as to require determination by the Commissioner, and whether failure to refer it vitiated the assessment. (ii) Whether notices sent by registered post to the proper address but refused by the assessee were duly served so as to sustain the assessments.
Issue (i): Whether any question under section 64 of the Indian Income-tax Act arose on the facts so as to require determination by the Commissioner, and whether failure to refer it vitiated the assessment.
Analysis: Section 64 deals with the place of assessment and the choice between Income-tax Officers of different areas where the Act otherwise applies. It has no application where the assessee's basic contention is that no Income-tax Officer within the taxable territory had jurisdiction at all. On the facts stated, the controversy was not one of territorial allocation under section 64 but one of jurisdiction to assess the assessee in the first place.
Conclusion: No question arose under section 64 for decision by the Commissioner, and the omission to refer the matter did not vitiate the assessment.
Issue (ii): Whether notices sent by registered post to the proper address but refused by the assessee were duly served so as to sustain the assessments.
Analysis: Service under section 63(1) of the Indian Income-tax Act may be effected by post, and section 27 of the General Clauses Act, 1897 raises a presumption of service where a document is properly addressed, prepaid and posted by registered post. Where the notice reaches the correct address and is refused, the notice is treated as tendered and service is not defeated merely because the assessee did not actually receive it.
Conclusion: The notices were duly served in law if they were sent by registered post to the proper address and refused, and the assessments were not invalid on that ground.
Final Conclusion: The reference was answered against the assessee on both substantive points, leaving the assessments undisturbed.
Ratio Decidendi: Section 64 governs only the place of assessment where jurisdiction under the Act otherwise exists, and a notice properly addressed and posted by registered post is deemed served notwithstanding refusal by the addressee.
TaxTMI 
AI Drafter ✕
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