Reassessment notice limitation and deemed service preserved validity despite challenge to postal service defects.

Section 149 of the Income-tax Act requires the reassessment notice to be issued within the prescribed limitation period, and actual service is not the controlling requirement for validity of the notice. Section 148 governs service before completion of reassessment, while Section 27 of the General Clauses Act creates a presumption of due service for a properly addressed notice sent by registered post unless rebutted. As the notice was dispatched to the relevant addresses and the assessee did not displace the presumption of service, the challenge based on alleged non-service failed and the reassessment proceedings were not invalidated.

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Issues: Whether the reassessment notice issued under Sections 147 to 149 of the Income-tax Act, 1961 was vitiated because the notice was not actually served within the limitation period and whether service could be presumed from dispatch by registered post and the postal endorsements.

Analysis: Section 149 speaks to the issuance of notice within the prescribed period, whereas Section 148 concerns service of the notice before completion of reassessment. The Court held that the statutory emphasis in Section 149 is on issue, not actual service, and that issuance within limitation is sufficient to preserve jurisdiction. It further applied the presumption under Section 27 of the General Clauses Act, 1897 that a properly addressed and posted notice is deemed to have been served in the ordinary course, unless the contrary is proved. On the facts, the notice was dispatched to the relevant addresses and the petitioner failed to rebut the presumption of due service.

Conclusion: The reassessment notice was not invalidated by the alleged defect in service, and the challenge to the proceedings failed.

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