Valid reassessment service on HUF receiver upheld where notices reached the assessee and proceedings were participated in.

Service of reassessment notices on an interim official receiver appointed in insolvency proceedings for a Hindu undivided family was treated as valid service where the receiver had full powers of administration over the family estate. The court noted that service of notice is a condition precedent to valid reassessment, but the statutory mode of service permitted delivery to the manager or adult member of an HUF, and the receiver was competent to receive notices on the family's behalf. The notices were also found to have been passed on to the assessee, which filed returns and participated in the proceedings. Reassessment was therefore upheld.

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Issues: Whether service of reassessment notices on the interim official receiver appointed in insolvency proceedings against the Hindu undivided family was valid service on the assessee, and whether reassessment based on such service was lawful.

Analysis: The notices for the relevant assessment years were addressed to the Hindu undivided family and served on the interim official receiver who had been appointed by court with full powers of administration over the family properties, including powers to manage the estate and take steps on its behalf. Service of notice under the reassessment provisions is a condition precedent to a valid reassessment, but the mode of service under the Act permits service on the manager or adult member of a Hindu undivided family, and the insolvency appointment made the receiver competent to receive notices on behalf of the family. The Tribunal also found that the notices were in fact passed on to the assessee, which filed returns in response and participated in the proceedings. The contention that reassessment had to be made only on the receiver as representative assessee was rejected because the notices were addressed to the Hindu undivided family and the receivers were not shown to have received the relevant income so as to attract representative-assessment treatment.

Conclusion: Service of the notices on the interim official receiver was valid service on the assessee, and the reassessment was upheld in favour of the Revenue.

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