11SERVICE OFSERVICE OFNOTICENOTICEShankar BoseInspector of Income-taxMSTU, Puri
22• Section 282: Service of noticegenerally.• Section 283: Service of notice whenfamily is disrupted or firm etc. isdissolved.• Section 284: Service of notice in thecase of discontinued business.
33• Section 282 (1) :– A notice or requisition under this Act maybe served on the person therein namedeither by ‘Post’ or ‘as if it were a summonsissued by a court under the Code of CivilProcedure, 1908 (5 of 1908)’.
44Meaning of the term ‘by Post’Meaning of the term ‘by Post’• S.27 of the General Clauses Act states that‘where any Central Act or Regulation madeafter the commencement of this Actauthorises or requires any document to beserved by post - the service shall be deemedto be effected properly by addressing,prepaying and posting by registered post ---and will be deemed to have been effected atthe time unless the contrary is proved .
55……Who is the addressee?...Who is the addressee?...• In case of total partition of HUF notice to beserved on the last manager of the HUF, ifdead, then to be served on all adults whowere members of HUF before partition.• Firm/AOP dissolved - notice may be servedon any person who was a partner (non-minor) or member of AOP, immediatelybefore dissolution.
66• Firm/AOP : Any Member of the firm or theManager or any adult member of the family.• Local Authority/Company : Principal Officer• AOP/BOI : Principal Officer or any member• Any other person (non individual) : Personwho manages/controls affairs.Who is the addressee?...Who is the addressee?...
77• In the case of discontinued businesswhere assmt to be made u/s 176, noticemay be served on the person whoseincome is to be assessed, or in thecase of Firm / AOP on any person whowas a member of such Firm / AOP atthe time of discontinuance. In the caseof a Company on the Principal Officerthereof.……Who is the addressee?Who is the addressee?
88Interpretations of certain postalInterpretations of certain postalremarksremarks• Refused• Not found• Left• Not Known
99General Principles of ServiceGeneral Principles of Service• Mere Knowledge not sufficient.• Burden of proof: Duty of the issuingauthority.
1010‘Service of notice as if it were asummons issued by Court under theCode of Civil Procedure ’ 1908’• Rules 9 to 30 of Order V of the aboveCode are connected to S.282 of theI.T.Act. Some of the important rulesare discussed below.
1111Rules 9 to 30 of Order V of theRules 9 to 30 of Order V of theCode of Civil Procedure’ 1908Code of Civil Procedure’ 1908• Rule 9 to 12 : Personal Service.• Rule 15: Defendant absent from Residence.• Rule 16: Acknowledgement to be given.• Rule 17: Service by Affixture
1212• Rule 19: Examination of Serving Officer• Rule 19A: Service by post also.• Rule 20: Substituted Service• Rule 20 (1A): Advertisement• Rule 30: Letter.……Rules 9 to 30 of Order V of theRules 9 to 30 of Order V of theCode of Civil Procedure’ 1908Code of Civil Procedure’ 1908
1313• The Code of Civil Procedure, 1908came into effect w.e.f. 1.1.1909• An Act to consolidate and amend thelaw relating to the procedure of thecourts of civil judicature.Code of Civil Procedure and itsinfluence on Income Tax Act,1961
1414• The Income-tax Act mainly deals with mattersakin to those dealt with by civil courts.Therefore, Income-tax Act has drawn heavilyfrom Code of Civil Procedure (“CPC” inshort), 1908.• Many of the provisions are drafted on thelines of analogous provisions in CPC.Code of Civil Procedure and itsinfluence on Income Tax Act, 1961
1515• In some Sections and Rules, viz., S.131and 282 of I.T.Act, 1961 and R.10, 27(2),29 and 83 of IInd Schedule to IncomeTax Act, 1961, CPC finds explicitmention.Code of Civil Procedure and itsinfluence on Income Tax Act, 1961
1616SERVICE OF NOTICESERVICE OF NOTICEPROFORMAPROFORMADate Time Reasonfor non-deliveryRemarks1stAttempt2ndAttempt3rdAttempt
1717CHECKSHEET…CHECKSHEET…• Is it the proper notice to be issued?• Is it in the prescribed format?• Are inapplicable words or clauses struck off?• Is it addressed to the correct person?• Is the address correct?• Are the name and status of the assesseecorrectly mentioned?• Is the assessment year correctly mentioned?• Is the person addressed given a reasonabletime to respond?
1818• Are the date, time and venue of hearinggiven?• Are the requirements such as thebooks to be produced or information tobe furnished or requirement ofpersonal attendance clearly specifiedin the notice?• Is the notice signed and seal affixed?……CHECKSHEETCHECKSHEET