Service of notice

11

SERVICE OF SERVICE OF NOTICENOTICE

Shankar BoseInspector of Income-tax

MSTU, Puri

22

• Section 282: Service of notice generally.

• Section 283: Service of notice when family is disrupted or firm etc. is dissolved.

• Section 284: Service of notice in the case of discontinued business.

33

• Section 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)’.

44

Meaning 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 made after the commencement of this Act authorises or requires any document to be served by post - the service shall be deemed to be effected properly by addressing, prepaying and posting by registered post --- and will be deemed to have been effected at the time unless the contrary is proved .

55

……Who is the addressee?...Who is the addressee?...

• In case of total partition of HUF notice to be served on the last manager of the HUF, if dead, then to be served on all adults who were members of HUF before partition.

• Firm/AOP dissolved - notice may be served on any person who was a partner (non-minor) or member of AOP, immediately before dissolution.

66

• Firm/AOP : Any Member of the firm or the Manager or any adult member of the family.

• Local Authority/Company : Principal Officer

• AOP/BOI : Principal Officer or any member

• Any other person (non individual) : Person who manages/controls affairs.

Who is the addressee?...Who is the addressee?...

77

• In the case of discontinued business where assmt to be made u/s 176, notice may be served on the person whose income is to be assessed, or in the case of Firm / AOP on any person who was a member of such Firm / AOP at the time of discontinuance. In the case of a Company on the Principal Officer thereof.

……Who is the addressee?Who is the addressee?

88

Interpretations of certain postal Interpretations of certain postal remarksremarks

• Refused

• Not found

• Left

• Not Known

99

General Principles of ServiceGeneral Principles of Service

• Mere Knowledge not sufficient.

• Burden of proof: Duty of the issuing authority.

1010

‘Service of notice as if it were a summons issued by Court under the Code of Civil

Procedure ’ 1908’

• Rules 9 to 30 of Order V of the above Code are connected to S.282 of the I.T.Act. Some of the important rules are discussed below.

1111

Rules 9 to 30 of Order V of the Rules 9 to 30 of Order V of the Code 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 the Rules 9 to 30 of Order V of the Code of Civil Procedure’ 1908Code of Civil Procedure’ 1908

1313

• The Code of Civil Procedure, 1908 came into effect w.e.f. 1.1.1909

• An Act to consolidate and amend the law relating to the procedure of the courts of civil judicature.

Code of Civil Procedure and its influence on Income Tax Act,

1961

1414

• The Income-tax Act mainly deals with matters akin to those dealt with by civil courts. Therefore, Income-tax Act has drawn heavily from Code of Civil Procedure (“CPC” in short), 1908.

• Many of the provisions are drafted on the lines of analogous provisions in CPC.

Code of Civil Procedure and its influence on Income Tax Act, 1961

1515

• In some Sections and Rules, viz., S.131 and 282 of I.T.Act, 1961 and R.10, 27(2), 29 and 83 of IInd Schedule to Income Tax Act, 1961, CPC finds explicit mention.

Code of Civil Procedure and its influence on Income Tax Act, 1961

1616

SERVICE OF NOTICESERVICE OF NOTICEPROFORMAPROFORMA

Date Time Reason for non-delivery

Remarks

1st Attempt

2nd Attempt

3rd Attempt

1717

CHECKSHEET…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 assessee

correctly mentioned?• Is the assessment year correctly mentioned?• Is the person addressed given a reasonable

time to respond?

1818

• Are the date, time and venue of hearing given?

• Are the requirements such as the books to be produced or information to be furnished or requirement of personal attendance clearly specified in the notice?

• Is the notice signed and seal affixed?

……CHECKSHEETCHECKSHEET

1919