Waiver of defective notice and remand for fresh merits review upheld where the assessee participated through its auditor.

A defect in service of notice under section 143(2) did not invalidate the assessment where the assessee's auditor had appeared before the Assessing Officer and filed the return on the assessee's behalf, because the objection was treated as waived by conduct. The Tribunal was also correct in setting aside the appellate order and remanding the matter for fresh consideration on merits, as the appellate authority had not adequately discussed the issues and a de novo decision was directed after giving proper hearing. The HC held that no substantial question of law arose, and the assessee's appeal failed.

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Issues: (i) Whether the objection to service of notice under section 143(2) could invalidate the assessment when the assessee was represented before the Assessing Officer; (ii) whether the Tribunal was justified in setting aside the appellate order and remanding the merits for fresh consideration.

Issue (i): Whether the objection to service of notice under section 143(2) could invalidate the assessment when the assessee was represented before the Assessing Officer.

Analysis: The assessee's auditor had appeared before the Assessing Officer and had filed the return on behalf of the assessee. In those circumstances, the defect, if any, in service of notice stood waived by conduct, and the objection to notice could not be sustained.

Conclusion: The challenge based on improper service of notice was rightly rejected.

Issue (ii): Whether the Tribunal was justified in setting aside the appellate order and remanding the merits for fresh consideration.

Analysis: The appellate authority had not adequately discussed the merits, and the Tribunal directed a de novo decision after granting adequate opportunity of hearing. That course was found to be proper and in accordance with law.

Conclusion: The remand for fresh adjudication on merits was upheld.

Final Conclusion: No substantial question of law arose, and the assessee's appeal failed.

Ratio Decidendi: Where the assessee is represented in the assessment proceedings and does not object to such representation at the relevant time, any defect in service of notice may be treated as waived by conduct; a remand for de novo consideration is sustainable when the merits were not adequately dealt with and fresh hearing is afforded.

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