https://www.taxtmi.com/caselaws?id=787232 A notice of demand under Section 156 of the Income-tax Act is valid only when tax, interest, penalty, fine or another sum is payable pursuant to an existing assessment or other order. Where the original scrutiny assessment under Section 143(3) resulted in nil demand, full disclosure had been made, and no reassessment under Section 147 had been initiated, Section 156 could not be used as a standalone recovery measure. On those facts, the delayed demand notice was without jurisdiction and invalid, because no operative order existed creating any enforceable liability. en-us Mon, 02 Feb 2026 00:00:00 +0530 Sat, 28 Feb 2026 08:41:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=787232 A notice of demand under Section 156 of the Income-tax Act is valid only when tax, interest, penalty, fine or another sum is payable pursuant to an existing assessment or other order. Where the original scrutiny assessment under Section 143(3) resulted in nil demand, full disclosure had been made, and no reassessment under Section 147 had been initiated, Section 156 could not be used as a standalone recovery measure. On those facts, the delayed demand notice was without jurisdiction and invalid, because no operative order existed creating any enforceable liability. Case-Laws Income Tax Mon, 02 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=787232