Service of Notice Under the Income Tax Act [Section 282 to 284]

These sections govern how notices, summons, orders, and other communications must be served by the Income Tax Department to taxpayers. Proper service ensures legal validity in assessments, penalties, and recovery proceedings.

1. Section 282: General Rules for Service of Notice

Modes of Service

A notice/order can be served on a taxpayer by:

1. Post (Registered Mail/Speed Post)

• • Sent to the last known address(as per ITR or PAN records)
  • Deemed served even if returned undelivered (CIT vs. Major Tikka Khushwant Singh)

2. Hand Delivery

• • By an Income Tax Officer (ITO) or authorized official
  • Must be delivered to:
    • The taxpayer personally, or
    • An authorized representative(e.g., CA, lawyer, family member)

3. Electronic Mode (Email/IT Portal)

• • Uploaded on the Income Tax e-filing portal
  • Sent via registered email/SMS(if taxpayer has consented)

4. Public Notice (If Address Unknown)

• • Published in two newspapers(one local, one national)

Key Judicial Rulings

• “Last Known Address” Rule: If sent to the address in ITR, it is valid even if the taxpayer has moved (CIT vs. Chetan Das Lachman Das)
• Refusal to Accept Notice: If the taxpayer refuses delivery, it is still considered served (ITO vs. Laxmi Narain)

2. Section 283: Service of Notice in Case of Deceased/Legal Heirs

If the taxpayer is deceased, notice must be served to:

1. Legal heir/executor(if probate/will exists)
2. All legal heirs(if no will)
3. Karta of HUF(if the taxpayer was part of an HUF)

Exception: If heirs are unknown, notice can be served via publication in newspapers.

3. Section 284: Service of Notice to Companies/Partnerships

For companies, LLPs, and firms, notice must be served to:

1. Principal Officer(e.g., Director, CFO, Company Secretary)
2. Registered Office(via post/hand delivery)
3. Authorized Representative(CA, lawyer)

Note: If the company is dissolved, notice must be sent to the liquidator.

4. Consequences of Invalid Service

• Assessment orders can be quashedif notice was not properly served (CIT vs. Ramendra Nath Ghosh)
• Penalties may be invalidif the taxpayer was unaware of proceedings

5. Key Takeaways

✅ Check IT Portal & Email Regularly – E-notices are legally valid.

✅ Update Address in ITR – Ensures notices reach you.

✅ Respond Within Deadline – Ignoring notices can lead to ex-parte orders.

⚠ No Physical Notice Needed – E-communication suffices if you’ve consented.