Jurisdictional notice by substituted service is valid for reassessment when due diligence and prescribed procedure are satisfied.

Service of a reassessment notice under section 34 is a jurisdictional condition precedent, and reassessment cannot validly commence without proper service. Substituted service by affixation is effective where the serving officer, after due and reasonable diligence, cannot find the assessee and the procedure incorporated from the Code of Civil Procedure is followed. On the facts, personal attempts, enquiries as to whereabouts, affixation at the business premises in the presence of witnesses, and verification before the Income-tax Officer satisfied the statutory requirements, so the notice was duly served and the reassessment proceedings were validly initiated.

---

---

Issues: Whether the notice issued for reassessment under section 34 was duly served on the assessee within the prescribed period so as to validly commence reassessment proceedings.

Analysis: Service of a notice under section 34 is not a mere procedural step but a condition precedent to the assumption of jurisdiction for reassessment. Under section 63(1) of the Income-tax Act, service may be effected as a summons under the Code of Civil Procedure, and Order V, rule 17 permits affixation where the defendant cannot be found after due and reasonable diligence. The record showed attempts to serve the assessee personally, inquiries as to his whereabouts, affixation of the notice on the business premises in the presence of witnesses, and verification before the Income-tax Officer. The statutory requirements for substituted service were therefore satisfied, and no irregularity vitiated the notice.

Conclusion: The notice was duly served, the reassessment proceedings were validly initiated, and the finding against validity was incorrect.

Final Conclusion: The reassessment was sustained because the jurisdictional notice under section 34 was validly served by substituted service in accordance with law.

Ratio Decidendi: Where the statute makes service of notice a condition precedent to reassessment, substituted service by affixation is valid if the serving officer, after due and reasonable diligence, cannot find the assessee and the service complies with the procedure incorporated from the Code of Civil Procedure.

---