COMNR. OF INCOME TAX, CHANDIGARH vs M/S.PEARL MECH.ENGG.&FOUNDRY WORKS P.LTD

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 service is meaningless and an exercise in futility, thus upholding the order of the Income Tax Appellate Tribunal which set aside the acquisition. The judgment clarifies the procedural requirements for valid acquisition under Chapter XXA of the Income Tax Act.