1985 (11) TMI 14

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....of Rs. 1,108 under section 271(1)(a) of the Income-tax Act, 1961 ? " , From the statement of facts as stated by the Commissioner of Income-tax, Bihar, Patna, it appears that for the assessment year 1970-71, the due date for filing the return was September 30, 1970, but the assessee filed the return on August 10, 1971, and thus there was a delay in filing the return. The Income-tax Officer, therefore, initiated proceedings under section 271(1)(a) of the Act before completion of the assessment. A notice under section 274 read with section 271(1)(a) of the Act was issued on December 10, 1971, which was served on the assessee on December 14, 1971, as mentioned by the Income-tax Officer in the penalty order at page of the paper book. However,....

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....only considered the notice issued on December 10, 1971, and served on December 14, 1971, and, as in that notice, the assessment year was not mentioned, the Tribunal held that it was a serious defect in the notice and so the notice was defective and so the penalty proceedings carried on thereafter were invalid. The Tribunal, therefore, cancelled the penalty order of the Income-tax Officer. Mr. B. P. Rajgarbia, the learned advocate for the Revenue, has submitted that the Tribunal ignored the second notice which was served on the assessee on March 14, 1974, in which the assessment year was mentioned. He has also submitted that the satisfaction of the Income-tax Officer was recorded in the assessment order and the notice could be issued subs....