Mandatory service of notice under section 143(2) governs jurisdiction, and its application extends to block assessments under section 158BC.

A notice under section 143(2) of the Income-tax Act must be validly served within the prescribed time to confer jurisdiction; service attempted after the last permissible date, including defective affixation at the assessee's premises, was treated as insufficient, and later participation could not cure the bar of limitation. In block assessment proceedings under section 158BC, section 143(2) applies as a mandatory requirement to the extent contemplated by the phrase "so far as may be apply," although no notice is needed where the Assessing Officer accepts the return of undisclosed income without further enquiry. The discussion concludes that no substantial question of law arose.

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Issues: (i) Whether the notice under section 143(2) of the Income-tax Act, 1961 was validly served within the prescribed time, and whether proceedings initiated thereafter were time-barred and without jurisdiction. (ii) Whether section 143(2) of the Income-tax Act, 1961 applies as a mandatory requirement in block assessment proceedings under section 158BC of the Income-tax Act, 1961.

Issue (i): Whether the notice under section 143(2) of the Income-tax Act, 1961 was validly served within the prescribed time, and whether proceedings initiated thereafter were time-barred and without jurisdiction.

Analysis: The notice was required to be served by the last permissible date. No effective steps were taken before that date, and the attempt at service was made after working hours when no authorised person was available at the assessee's premises. Affixation on the gate did not amount to proper service, and any later participation by the assessee could not cure the defect once the proceedings had become time-barred.

Conclusion: The notice was not validly served within time, and the subsequent proceedings were time-barred and without jurisdiction.

Issue (ii): Whether section 143(2) of the Income-tax Act, 1961 applies as a mandatory requirement in block assessment proceedings under section 158BC of the Income-tax Act, 1961.

Analysis: Section 143(2) was treated as a mandatory provision in the context of assessment proceedings, including block assessments under Chapter XIV-B, but it was also recognised that no notice is necessary where the Assessing Officer accepts the return of undisclosed income and proceeds straightaway under section 158BC. The expression "so far as may be apply" was held to govern the extent of application in such cases.

Conclusion: Section 143(2) is mandatory in principle, though no notice is required where the return of undisclosed income is accepted without further enquiry.

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

Ratio Decidendi: A notice under section 143(2) of the Income-tax Act, 1961 must be validly served within the prescribed time to confer jurisdiction, and late or improper service cannot be cured by subsequent participation; in block assessment proceedings under section 158BC, the notice requirement applies subject to the statute's qualified incorporation of section 143(2).

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