1996 (9) TMI 637

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.... completed under section 143(a) of the Income-tax Act, 1961 ('the Act') on 23-1-1976 in the status of 'HUF'. On 10-1-1978, a notice was served on Trilochand under section 148 of the Act. The assessee filed fresh return on 4-2-1982 in the status of HUF repeating the same income as was mentioned earlier. On 26-3-1985, assessment was made under section 143(3) on the basis of fresh return. Aggrieved, the assessee filed the appeal before the AAC which was dismissed. The assessee then filed appeal before the Tribunal. The assessee impugned the order as invalid on the ground that notice under section 148 was not served on proper person. The Tribunal accepted the contention and set aside the assessment. The application was rejected. The applicant-r....

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.... the question as extracted below : "Whether, on the facts and in the circumstances of the case, the Tribunal was legally right in holding that the reassessment of the assessment year 1976-77 was invalid and without jurisdiction ?" 3. We have heard Shri Anand Mohan Mathur, the learned senior counsel with Shri A. Shrivastava, for the applicant and Shri P.M. Chaudhary, the learned counsel for the non-applicant. 4. We notice that before the Tribunal, the applicant-revenue had raised as many as three questions, but in these cases, only one question (which was question No. 1 before the Tribunal) is proposed and projected. 5. During submission, it was contended that the Tribunal was not justified in entertaining the additional ground o....

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....held that the conclusion based on appreciation of facts does not give rise to any question of law. 10. It is not disputed before us that there must be proper reasons for reopening of the assessment proceedings, in ITO v. Shri Biju Patnaik AIR 1991 SC 464, it is held as under : "Section 147(a) postulates two conditions, namely, that the Income-tax Officer must, on the basis of material facts on record, prima facie, to be satisfied that the income of the assessee is exigible to tax for the relevant assessment year and that he had reason to believe that it had escaped assessment. He must have reason to believe that the escapement of income was on account of the omission or failure on the part of the assessee to fully and truly disclose a....