DAULAT RAM KHANNA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE following question of law has been referred to us by the Income-tax Appellate Tribunal under section 66(1) of the Indian Income-tax Act :

(2.) THE assessee is a Hindu undivided family and the dispute relates to the year of assessment 1945-46, the accounting period being the year ending Chet Badi 15th, Smt. year 2001. On 29th March, 1954, a notice was issued under section 34 of the Indian Income-tax Act, 1922, by the Income-tax Officer, B-Ward, Amritsar. THE process server went to the assessees shop for service on 30th March, 1954, but he could not effect service because the karta of the assessee family was not present. THE proses server reported to the Income-tax Officer on the same day that the assessee had refused to accept service. THEreupon the Income-tax Officer on 30th March, 1954, sent a notice by registered post and also ordered substituted service by directing the process server to affix the same at the address of the assessee. THEre, service was effected by the process server on 31st March, 1954. the registered notice is stated to have been received by the assessee on 5th April, 1954. THE assessee objected to the validity and legality of the service but the Income-tax Officer held that the service of the notice by affixture was legal. On appeal, the Appellate Assistant Commissioner held that the service was defective as the copy of the notice had not been pasted on the outer wall of the office room or some other conspicuous place in the court building. THE Income-tax Appellate Tribunal, however, held that the notice had been properly served under Order V, rule 20, of the Code of Civil Procedure and as the Income-tax Officer was not a court it was not necessary to affix a copy of the notice on the notice board of the Income-tax Officer.