my client recieved scrutiny notice u/s 143(2)for a/y 2011/2012 on 01/10/2012 and on 31/09/2012 it was sunday. also a copy of the same notice was got recieved on The CA(who does audit for a/y2011/2012)on28/09/2012 by the department (but CA holds no power of attorney of the client,he only audited the balance sheet).
now my questions are: 1) is the reciept of notie by the CA is valid service on the client
2) is the notice recieved by my client on 01/10/2012 barred by limitation (since service of notice on the day following the last day which is a holiday is applicable to govt. offices and not assesse)
08 October 2012
i) Receipt of notice by CA is not valid because he/they have no power of attorney. ii) Notice served on 01/10/2012 is invalid. ITAT Indore bench's decision, on identical grounds, in the case of Servite Sisters Society Vs ACIT may be referred to.
08 October 2012
thanks Mr. sharma ji and Mr. chackrapani ji.
sharma sir in my view CA is only appointed to give an opinion on financial statements as mentioned in the appointment letter given to the client as such he is limited to forming an opinion on financial statements.
warrier sir can you give me any case laws in support of the fact that CA wtihout power of attorney is not elegible to recieve a valid notice.
08 October 2012
It is clearly mentioned that such notice shall be served on assessee. So I dont think that serving of such notice on a CA is valid even if he holds a power of attorney.
08 October 2012
Notice u/s 143(2) can be served ,among others, as per section 282 (1)(b) of the Income tax Act,1961 which is governed by Civil Procedure Code,1908.
Rule 12 of CPC 1908 provides that service shall be made on the defendant in person or on his agent.
Rule 2 of the CPC 1908 says Power of Attorney holders are agents.
On a conjoint reading of the above, CA holding POA can receive 143(2) notice which will be treated as a valid service.
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