INCOME TAX ACT, 1961

Assessment - Issue of notice -Validity of

Assessee-company had filed its return of income declaring at loss. AO issued notices under section 143(2) on 23-10-2002 and again on 24-12-2002 but no response were attended to both notices. AO framed an assessment under section 144 by again issuing notice under section 142(1) on 29-1-2003, which was also not complied by assessee. Assessee questioned the assessment order on the ground that notice under section 143(2) had not been served on it within the prescribed period. Held: Since, notice issued to assessee under section 143(2) had been dispatched by speed post at its address as per its return and same had not been received back,therefore, it could be presumed that it had reached assessee, particularly when no affidavit had been filed by assessee to effect that notice was not received by it.

Income-tax Act, 1961, Section 143, read with section 282

A.Y. : 2001-02
Decision: In favour of assessee.

CIT V. MADHSY FILMS (P) LTD.