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Issues:
1. Validity of the order of assessment due to non-service of notice under section 143(2) within the specified time. Analysis: The appeal before the Appellate Tribunal ITAT Delhi concerned the validity of an assessment order for the assessment year 2001-02. The main issue raised by the assessee was the non-service of notice under section 143(2) within the prescribed time limit. The relevant section 143(2) mandates that such notice must be served on the assessee within 12 months from the end of the month in which the return of income was filed. The first notice under section 143(2) in this case was dated 27-9-2002, and it was dispatched for service on the assessee on 30-9-2002. The assessee contended that the notice was not served within the statutory period, which rendered the assessment order invalid. The CIT(A) relied on the remand report of the Assessing Officer, which stated that the issue of non-service of notice was not raised by the assessee during the assessment proceedings. However, the assessee provided evidence to the CIT(A) showing that the notice was dispatched on 30-9-2002 but was not delivered to the addressee within the stipulated time frame. The Assessing Officer failed to rebut this evidence effectively. The Tribunal noted that as per the General Clauses Act, service by post is deemed to be effected when the letter would be delivered in the ordinary course of post, typically within a few days. Therefore, the Tribunal held that there was no valid service of notice under section 143(2) within the required timeframe, leading to a violation of the law and rendering the assessment order invalid. Consequently, the Tribunal allowed the appeal of the assessee, reversed the CIT(A)'s decision, and canceled the assessment order. As a result, the Tribunal did not adjudicate on the addition made by the Assessing Officer during the assessment proceedings due to the invalidity of the assessment order.
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