TaxTMI 
TaxTMI 
2004 (10) TMI 280
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....ase of the assessee was selected for scrutiny and in the absence of sufficient compliance on the part of the assessee to the notices issued by him during the course of assessment proceedings, the Assessing Officer proceeded to complete the assessment under section 143(3)/144 assessing the total income of the assessee at Rs. 20,00,000 as against the returned loss of Rs. 10,200. Aggrieved by the same, the assessee firm preferred an appeal before the learned CIT(A) challenging, inter alia, the validity of the order passed by the Assessing Officer under section 143(3) on the ground that no notice under section 143(2) was served on it within the time limit specified in the proviso to the said sub-section. Examination of assessment record by the learned CIT(A), however, revealed that the first notice issued under section 143(2) was served at the address given by the assessee in its return and the same was also signed by the recipient as 'A. Singh'. It was, however, submitted on behalf of the assessee firm that the said signature appearing on the office copy of notice under section 143(2) docs not belong either to any of its partners or authorized representative. It was also submi....
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....to be followed for service of the notice, is totally incorrect. The procedure for service of notice is provided specifically in section 282 of the Income-tax Act, 1961 which reads as under: - "282. (1) A notice or requisition under this Act may be served on the person therein named either by post or as if it were a summons issued by a court under the Code of Civil Procedure, 1908 (5 of 1908). (2) Any such notice or requisition may be addressed- (a) in the case of a firm or a Hindu undivided family, to any member of the firm, or to the manager or any adult member of the family; (b) in the case of a local authority or company, to the principal officer thereof; (c) in the case of any other association or body of individuals, to the principal officer or any member thereof; (d) in the case of any other person (not being an individual), to the person who manages or controls his affairs." 4. As is evident from the aforesaid provisions, a notice may be addressed in the case of a firm to any of its partners in addition to the firm itself in whose name the said notice is issued. As per the provisions contained in sub-section (1) of sec....
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....61 and the relevant provisions of Civil Procedure Code reproduced above shows that notices under the Income-tax Act are required to be served on the assessee in accordance with the provisions of section 282 and the same may be served personally upon the person named therein or upon his agent duly authorized. As per Rule 12 of Order V of CPC, a service has to be made, wherever it is practicable, on the person named therein unless he has an agent empowered to accept service in which case service on such agent is sufficient. In terms of Rule 13(1), a notice against a person who does not reside within the jurisdiction of the concerned agent, service on any Manager or agent who, at the time of service, personally carries on such business or work for such person within such limits shall be deemed to be good service. In terms of Rule 14, when service cannot be made on the person named therein, the same may be made, in the absence of an agent empowered to accept the service of summons, on any agent of such person in charge of the property of the defendant. As per Rule 15, where the defendant is absent from his residence when the service is sought to be effected and there is no likelihood o....
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....the general proposition that, just like any other assessee, a firm may be addressed in its own name. Hence, the notice issued in the name of the firm and served on one of its partners is quite valid and proper. Section 282(2)(a) merely prescribes a permissive mode of service and is not intended to be either mandatory or exhaustive. Consequently, the circumstance that the notice is not addressed to a partner will not invalidate the same if in fact it is served on the partner and accepted by him on behalf of the firm. A notice served on one of the partners of the firm is a sufficient notice to satisfy the requirements of law. However, notice issued to a firm cannot be validly served through Process Server on its employees who are not authorized to receive such notices as held by Hon'ble J & K High Court in the case of B. Johar Forest Works and Hon'ble Madras High Court in the case of Jayanthi Talkies Distributors. Similarly, service of notice relating to a firm on a person not connected nor concerned in any manner with the firm would be no service at all as held by Hon'ble Allahabad High Court in the case of Shri Sidh & Co. v. ITAT [1992] 194 ITR 747. 7. Where the noti....