Section 147 notice during pending assessment held ineffective; assessment to continue on the return already filed.

During pending assessment proceedings, a notice issued under section 147 of the Income-tax Act, 1961 was held to be ineffective and directed to be ignored. The Court noted that the assessee had already filed a return while the assessment was still pending, and the Income-tax Officer could proceed on that return in the existing proceedings. The remaining assessment proceedings were to continue in accordance with law.

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Issues: Whether the notice issued under section 147 of the Income-tax Act, 1961 during the pendency of the assessment proceedings was liable to be ignored.

Analysis: The proceedings related to the assessment year 1968-69 and a return had been filed while the assessment proceedings were still pending. A notice under section 147 was issued in the meantime. The Court accepted the contention that such a notice could not be issued during the pendency of the proceedings and that it was open to the Income-tax Officer to proceed on the basis of the return already filed.

Conclusion: The notice issued under section 147 of the Income-tax Act, 1961 was directed to be ignored, while the remaining proceedings were to continue in accordance with law.

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