Waiver of statutory notice by conduct validated agent assessment despite no fresh notice under section 43.

A statutory notice under section 43, issued for the assessee's protection, could be waived, and waiver may be inferred from conduct showing conscious acceptance of the taxing authority's jurisdiction. The assessee filed returns in response to notice under section 22(2) without protest, accepted the status of agent, and had earlier received section 43 notice and knew of the right to such notice. On those facts, the absence of a fresh section 43 notice did not invalidate the assessment as agent of a non-resident, and the assessment was held valid in law.

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Issues: Whether the assessment made on the assessee as agent of a non-resident was valid notwithstanding the absence of a fresh notice under section 43, and whether the assessee had waived the statutory notice.

Analysis: The statutory notice under section 43 was treated as capable of being waived. Waiver could be inferred from the assessee's course of conduct, including filing returns in response to notice under section 22(2) without protest, accepting the status of agent, and the fact that the assessee had earlier received notice under section 43 and was aware of its right to such notice. The filing of a return in response to section 22(2) did not, by itself, preclude an inference of waiver; the surrounding circumstances showed conscious relinquishment of the right to object to want of notice.

Conclusion: The assessment was valid in law, and the question was answered in favour of the Revenue.

Final Conclusion: The absence of a fresh notice under section 43 did not vitiate the assessment where the assessee's conduct established waiver of that notice.

Ratio Decidendi: A statutory notice intended for the assessee's protection may be waived, and such waiver can be inferred from conduct showing conscious acceptance of the taxing authority's jurisdiction and status as agent, even where the return is filed in response to another notice.

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