Limitation for block assessment upheld as expired after valid service of notice, rendering the order non est.

Service of the block assessment notice was treated as duly effected on or before 30 January 2002 because it was dispatched to the correct address and the envelope was not returned, so the statutory presumption of service applied. On that basis, the two-year limitation period expired on 31 January 2004, while the assessment order was passed on 5 February 2004. The HC therefore held that the block assessment order was made beyond the prescribed time limit, was barred by limitation, and was non est, with the finding in favour of the assessee.

---

---

Issues: Whether the block assessment order was time-barred and without jurisdiction on account of the date of service of notice under the block assessment provisions.

Analysis: The notice dispatched to the assessee at the correct address was held to have been duly served on or before 30.1.2002, and the court accepted the presumption arising from proper dispatch and non-return of the envelope. On that basis, the two-year limitation under the block assessment provision expired on 31.1.2004, whereas the assessment order was passed on 5.2.2004. The assessment was therefore held to have been made beyond the prescribed statutory period.

Conclusion: The block assessment order was barred by limitation and was non est; the finding was in favour of the assessee.

---