VALIDITY OF ASSESSMENT ORDER

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Sumitr (Querist)
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23 January 2010 Please let me know if the Assessment Order U/s 143(3) of the Income Tax Act. for the Assessment Year 2007-2008 served the assessee on 4th January, 2009 is a valid service. Please tell me if there are any Case Law / Specific Provision in the Act. confirming for either (YES / No) of the answer.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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23 January 2010 The assessment order must be posted by 31st December, 2009 for A. Y. 2007-08 as the assessment gets time barred by that time.

So even if the same is received even after 31st dec it is valid.

Sumitr

Sumitr (Querist)
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29 January 2010 The Assessment Order is passed on 31st December, 2009 but the same is served upon the assessee on 2nd January, 2010. the Question asked was whether such service of the Order is Valid or BAD in law.

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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02 August 2025 This is a very relevant and technical question in income tax law. Let’s clarify the **validity of an assessment order under Section 143(3)** with reference to **Assessment Year (AY) 2007–08** and the **relevant statutory provisions** and judicial precedents.

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### ✅ **Legal Framework:**

#### 1. **Time Limit for Passing the Assessment Order**

* **Section 153(1)** of the Income Tax Act, 1961 (as applicable to AY 2007–08) provides that the **assessment under Section 143(3)** must be completed **within 21 months** from the end of the **assessment year**.

For **AY 2007–08**, the last date for passing the order was:

> **31st December, 2009**

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#### 2. **Date of Service vs. Date of Passing**

* The law **requires the assessment order to be *passed* within the prescribed time limit**, not necessarily **served**.

> 🔹 As long as the **order is passed (i.e., signed/digitally signed and dispatched)** by **31st December, 2009**, it is **valid**, even if it is **served a few days later** (e.g., on 2nd or 4th January 2010).

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### 📌 **Key Case Law Support:**

#### 🔹 *CIT v. Mahi Valley Hotels & Resorts* (2006) 287 ITR 360 (Guj)

> It was held that the **date of dispatch of the assessment order** is **not relevant** for limitation purposes. What matters is **when the order was passed (i.e., signed and kept ready for dispatch).**

#### 🔹 *CIT v. Videsh Sanchar Nigam Ltd.* (2012) 340 ITR 66 (Bom)

> The court clarified that **if the assessment order was made within time and dispatched promptly**, even if received later by the assessee, it will be treated as valid.

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### ❌ Invalidity (When it would be bad in law):

* If the **order was signed or passed after 31st December, 2009**, even if backdated — it would be **time-barred** and **invalid**.
* Mere **service beyond 31st December** does **not invalidate** the order if it was actually passed within time.

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### ✅ Conclusion:

> **Yes**, the assessment order under **Section 143(3)** for **AY 2007–08** is **valid** if it was **passed on or before 31st December, 2009**, even though **served on 2nd January, 2010**.

The **service date does not impact validity** if the order is passed within the prescribed time.

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Let me know if you want a draft reply or representation letter citing these points.

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