TaxTMI 
TaxTMI 
2007 (1) TMI 139
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....e facts may briefly be noticed. The assessee is a registered firm. It carries on the business of sale, purchase and repair of radios. On September 21, 1970, original assessment was made at Rs. 8,010 by the Income-tax Officer under section 143(1) of the Income-tax Act, 1961 (for brevity "the Act") on the basis of the return of income filed by the assessee on August 23, 1969, declaring its income to be Rs. 7,959. The Assessing Officer completed the assessment by issuing notice under section 148 of the Act to the assessee on June 2, 1973. The reasons recorded before issue of notice under section 148 of the Act were: "Issue notice under section 148 of the Act for the assessment year 1969-70 as I have reasons to believe that the income has....
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.... on the ground that no reasons were recorded for issuance of notice under section 148 of the Act. The order of the Appellate Commissioner as reproduced by the Tribunal reads as under: "I have gone through the assessment records. The reasons recorded before issue of notice under section 148 are as under: June 2, 1973 "Issue notice under section 148 for the assessment year 1969-70 as I have reasons to believe that the income has been underassessed for this year. (Sd.) . . . . . . . . . . . Income-tax Officer" It appears that there were some certain complaints against the assessee about tax evasion and the Income-tax Officer issued notice under section 148 of the Act resting his belief on the complaints. No verification of th....
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....caped assessment. In the circumstances, the entire proceedings are vitiated. I am, therefore, unable to sustain the order passed by the Income-tax Officer. The issue of notice under section 148 and subsequent passing of the order under section 143(3)/147 are therefore annulled." After serving notice and filing of reply it was submitted on behalf of the assessee that notice under section 148 of the Act could not be issued as it had already been annulled by the Appellate Assistant Commissioner, Patiala Range, Patiala. In support of his submission, reliance was placed on a Division Bench judgment of the Allahabad High Court in the case of Manoo Lal Kedarnath v. UOI [1978] 114 ITR 884. However, the Assessing Officer rejected the submission m....
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....have been found to be identical as those taken into consideration in the first reassessment proceedings. Secondly, the assessment order by the Assessing Officer was sought to be justified on the ground that he had asked for, and had obtained the sanction of the Commissioner for reassessment of the proceedings. The Tribunal has concluded in paragraph 10 as under: "From the facts stated above, it is clear that even the Commissioner did not apply his mind properly to come to a conclusion whether there was escapement of income because the very reasons on the basis of which reassessment earlier had been struck down by the Appellate Assistant Commissioner were taken again to initiate second reassessment proceedings. In our opinion, the case is....