S.S.Sandhawalia, J.

1. Whether the limitation provision of Sec.149 of the Income-tax Act, 1961, envisages the issuance of a notice only, or its actual service subsequently on the assessee as well, is the intricate and significant question necessitating this reference to a Full Bench. Particularly in issue is the correctness of the view enunciated by the Full Bench on this point in Jai Hanuman Trading Co. Pvt. Ltd. V/s. CIT [1977] 110 ITR 36 (P & H).

2. The assessment year in this reference was way back 1961-62. The Revenue being of the opinion that substantial income has escaped assessment initiated proceedings under Sections 147 and 148 of the Income-tax Act, 1961 (hereinafter to be referred to as "the Act"). For that purpose, a notice for reassessment to the assessee which was actually signed on March 30, 1970, was admittedly issued by registered post on March 31, 1970. Though the precise date of its service is not on the record, it is common ground that the said notice was served later in the first week of April, 1970. The assessee raised objection that the notice, though issued within the period of limitation but having not been served within eight years from the end of