Commissioner Of Income Tax, Chandigarh vs M/S Pearl Mech. Engg. & Foundry Works P. ...

The Supreme Court held that the service of notice under Section 269D(2) of the Income Tax Act, 1961 prior to the publication of the notice in the official gazette under Section 269D(1) renders the entire acquisition proceedings illegal and without jurisdiction. The Court affirmed the High Court's decision that such premature service is meaningless and ineffective, thus upholding the Income Tax Appellate Tribunal's order that set aside the acquisition. The judgment emphasizes the importance of following statutory procedures in tax acquisition matters.