Improper service of notice to a co-operative society justified setting aside assessment and penalty orders and remand.

Service of notice on a co-operative society was held improper where the notices were addressed in the personal name of the former President, who had already died, and postal return reflected that defect. On that basis, the challenge to the assessment and penalty orders was maintainable for want of due notice, and both orders were set aside. The matter was remanded for fresh assessment after proper notice and opportunity to the society, while the limitation objection was left open for the assessing authority to consider in the remanded proceedings.

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Issues: Whether the assessment order and penalty order were liable to be set aside for want of proper notice to the co-operative society, and whether the matter should be remanded for fresh assessment.

Analysis: The notices were addressed to the society but were sent in the personal name of the then President, who had already expired, and the postal endorsement showed return for that reason. In these circumstances, service on the society was not proper. The challenge to the assessment and penalty was therefore maintainable on the ground of absence of due notice. The objection regarding expiry of limitation was left open to be raised before the assessing authority in the remanded proceedings.

Conclusion: The assessment order and the penalty order were set aside, and the matter was remanded to the respondent authorities for fresh assessment after due notice and opportunity to the petitioner-society.

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