Summary
Section 292BB cures specified defects in service of an issued tax notice where the assessee participates; it does not cure complete failure to issue the notice. Because no section 143(2) notice had emanated from the department, participation could not validate the assessment. The Court upheld the Tribunal and High Court and dismissed the Revenue’s appeals.
Issues
- Whether participation under section 292BB cures complete non-issuance of the required section 143(2) notice.
Provisions considered
- Section 292BB, Income-tax Act, 1961Deemed service can cure service-related infirmities after participation, but presupposes issuance of a notice and cannot supply a wholly absent notice. (¶ 6–10)
Held
- The statutory fiction concerns non-service, late service or improper service upon a participating assessee, subject to the proviso preserving an objection raised before completion of assessment or reassessment. (¶ 6–7)
- A notice must have emanated from the department before section 292BB can operate. Its purpose is to cure infirm service, not complete absence of the notice itself. (¶ 8–9)
- The record established that no section 143(2) notice was ever issued. The conclusions of the High Court and Tribunal invalidating the proceedings were therefore correct. (¶ 10–11)
Result
Revenue’s appeals dismissed without costs; Tribunal and High Court conclusions upheld because the required notice was never issued.