1981 (2) TMI 25

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....s referred in all the four cases are the same which are as follows : " 1. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that, before levying the penalty, the assessee was allowed a reasonable opportunity of being heard ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the absence of an affidavit in the case denying the service on oath, led to the conclusion that there was valid and a proper service of the notices sent both by post and as summons issued by a court under the Civil Procedure Code? " As such, it is apparent that the point in issue is, whether the assessees were afforded an opportunity of being heard, before the....

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.... the assessees or persons who had received such notices in the past and acted for the assessees. As such, the AAC accepted the contention of the assessees that no opportunity of a hearing had been given to them. He therefore, cancelled the orders imposing penalties and allowed appeals. The revenue then preferred appeals before the Income-tax Appellate Tribunal contending that the ITO had been justified in treating the service effected on 3rd February, 1969, and reminders sent under postal certificate as sufficient service, thereby giving the assessees a reasonable opportunity of being heard. The Tribunal accepted this contention, mainly based on the fact that the assessees had not filed affidavits categorically asserting that they had no....

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....d for the assessees nor what their authority was to do so, it would appear to us that service was not properly effected on the assessees concerned on 3rd February, 1969. Coming to the next question of service by post, the provisions of s. 27 of the General Clauses Act, 1897, are relevant. Section 27 provides that where any Central Act or Regulation authorises or requires any document to be served by post, then, unless a different intention is drawn, the service shall be deemed to be effected properly if a correctly addressed and stamped letter containing the document is despatched by registered post; and unless the contrary is proved, such a letter would be deemed to have been delivered in the ordinary course of post. The I.T. Act is a C....