Valid service of scrutiny notice is jurisdictional; service on a minor child cannot sustain the assessment.

Valid service of the scrutiny notice under section 143(2) is a jurisdictional requirement for a valid assessment. Service on the assessee's minor daughter was not recognised as proper service on the assessee, and the record did not show valid service or refusal by the assessee. Because the statutory notice was not lawfully served, the assessee was denied the required opportunity in the assessment proceedings. The defect went to the root of jurisdiction, so the assessment could not be sustained and was annulled in favour of the assessee.

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Issues: Whether service of notice under section 143(2) of the Income-tax Act, 1961 on the assessee's minor daughter amounted to valid service on the assessee and whether the resultant assessment could be sustained.

Analysis: The notice required for scrutiny assessment had to be served in the manner recognised by law, and service on a minor child was not treated as valid service on an assessee. The assessee denied receipt of the statutory notice on oath, and the record did not establish proper service or refusal of service by the assessee. In these circumstances, the defect in service went to the root of the assessment proceedings and the lack of proper opportunity rendered the assessment unsustainable.

Conclusion: The service of notice was held to be invalid, and the annulment of the assessment was upheld in favour of the assessee.

Final Conclusion: The revenue's appeal failed because the foundational statutory notice was not validly served, making the assessment liable to be annulled.

Ratio Decidendi: Mandatory service of the scrutiny notice on the assessee, or on a legally recognised adult member where permissible, is a jurisdictional requirement, and failure to effect valid service vitiates the assessment proceedings.

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