Notice deemed to be valid in certain circumstances
[As per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 523(1) of Income Tax Act 2025
523(1) Where an assessee has appeared in any proceeding or co-operated in any inquiry relating to an assessment or reassessment, it shall be deemed that any notice under this Act, which is required to be served upon him, has been duly served upon him in time as per the provisions of this Act and such assessee shall be precluded from taking any objection in any proceeding or inquiry under this Act that the notice was—
- 523(1)(a) not served upon him; or
- 523(1)(b) not served upon him in time; or
- 523(1)(c) served upon him in an improper manner.
Section 523(2) of Income Tax Act 2025
523(2) The provisions of sub-section (1) shall not apply where the assessee has raised such objection before the completion of such assessment or reassessment.
FAQs on Section 523 of the Income Tax Act, 2025
Q1: What does Section 523(1) of the Income Tax Act, 2025 state?
A: Section 523(1) states that if an assessee has participated in an assessment or reassessment process, they cannot later object that the notice was not served, was not served on time, or was served improperly.
Q2: Under what circumstances is a notice deemed valid as per Section 523(1)?
A: A notice is deemed valid if the assessee has:
- Appeared in any proceeding, or
- Co-operated in any inquiry related to an assessment or reassessment.
Q3: What are the objections an assessee cannot raise under Section 523(1)?
A: The assessee cannot raise the following objections:
- That the notice was not served.
- That the notice was not served on time.
- That the notice was served improperly.
Q4: Can an assessee challenge the validity of a notice in any situation?
A: Yes, under Section 523(2), an assessee can challenge the validity of the notice if they raise the objection before the completion of the assessment or reassessment.
Q5: What is the significance of Section 523 in tax assessments?
A: It ensures that taxpayers cannot delay or challenge tax proceedings on technical grounds of improper notice service if they have already participated in the process.
