Valid service of income-tax notice on an authorised agent upheld for a Hindu undivided family.

Service of income-tax notice on an authorised agent of a Hindu undivided family carrying on business through that agent was held to be valid. Section 63 was construed as permitting, rather than restricting to exclusive modes of service, notice by post or as a summons under the CPC, and the reference was answered in favour of the Revenue. The court rejected the contention that service had to be confined to the family member, manager, or adult male member expressly mentioned for a Hindu undivided family.

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Issues: Whether service of the notice under section 22(2) of the Indian Income-tax Act on the assessees' agent was good service in the case of a Hindu undivided family carrying on business through an agent.

Analysis: Section 63 of the Indian Income-tax Act provided that notice might be served by post or as if it were a summons issued by a Court under the Code of Civil Procedure, 1908, and also enabled notice to be addressed in the case of a Hindu undivided family to a member of the family, the manager, or any adult male member. The provision was construed as not excluding service on an authorised agent. The use of the word "may" in section 63(2) indicated that the specified modes were permissive and not exclusive. The construction advanced against the service on the agent was rejected.

Conclusion: Service of the notice on the agent was valid and the reference was answered in the affirmative, against the assessee and in favour of the Revenue.

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