Unserved assessment orders cannot be revised before communication, as revisional jurisdiction depends on an operative order.

A statutory assessment order affecting an assessee's rights does not become effective for revisional action until it is communicated to the assessee. On that basis, the Commissioner could not validly invoke revisional jurisdiction under section 24(2) of the Gift-tax Act, 1958, to set aside an unserved assessment order, because there was no operative order in existence when proceedings were initiated. The court also rejected the attempt to characterise the action as reassessment, holding that the statutory limits of the power invoked did not permit that treatment. The question was answered in favour of the assessee and against the Revenue.

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Issues: Whether the Commissioner of Gift-tax could validly exercise revisional jurisdiction under section 24(2) of the Gift-tax Act, 1958, to set aside an assessment order that had not been served on the assessee.

Analysis: The decisive principle applied was that an assessment order affecting rights of the assessee must be communicated to the assessee to become effective. The Court distinguished authorities relied upon by the assessee and noted that where non-communication leaves the assessee unaware of the order, the statutory right to challenge it would be prejudiced. Since the assessment order dated March 30, 1979 had not been served when the Commissioner initiated proceedings, there was no valid, operative order in existence for the Commissioner to revise under section 24(2). The attempt to treat the action as mere reassessment was also rejected because the statutory limits governing the power invoked did not permit that characterisation.

Conclusion: The Commissioner lacked jurisdiction to set aside the unserved assessment order, and the question referred was answered in the negative, in favour of the assessee and against the Revenue.

Ratio Decidendi: A statutory order affecting an assessee's rights does not become effective for the purpose of revisional action until it is communicated to the assessee; without such communication, revisional jurisdiction cannot be validly exercised.

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