1985 (10) TMI 46

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....ircumstances of the case, the Tribunal was justified in holding that the reassessment under section 147 was not valid in law?" In order to appreciate the question referred to us, it is necessary to notice the facts as found by the Tribunal in the first instance. For the assessment years 1967-68 and 1970-71 relevant to the accounting years ending on March 31, 1967, and March 31, 1970, respectively, the assessee did not file his returns on or before the time stipulated by section 139(1) of the Act. In that view, the Income-tax Officer, Assessment-7 Circle-II, Bangalore, issued notices under section 139(2) of the Act calling upon the assessee to file his returns within the time stipulated therein, with which also he did not comply. But, ....

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....relied on a number of rulings in support of their respective cases. Sri Srinivasan has urged that there were completed assessment proceedings and the reassessment proceedings commenced under section 147 of the Act and concluded were valid in law. Sri Sarangan in supporting the view expressed by the Tribunal has urged that there was no termination or completion of the assessment proceedings to commence reassessments under the Act. In the assessment proceedings, the assessee had been duly served, but the Income-tax Officer erroneously holding that he had not been served, dropped or closed them as " N.P. " and that those abbreviations stand for " no proceeding " are not in dispute. On these facts, the Tribunal was of the view that the....

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....ry. When the assessee did not file his returns either voluntarily or in response to the notices issued to him under section 139(2) of the Act, it was undoubtedly open to the Income-tax Officer to complete his best judgment assessment under section 144 of the Act and that he did not do so, is not in dispute at all. But, that hardly makes any difference and has no relevance to determine the validity of the reassessment proceedings. We are not concerned with what the Income-tax Officer did or did not do then or even the illegalities, if any, committed by him. We are not now sitting in judgment on the validity of the earlier orders which is also impermissible. We are now only concerned with the true legal effect of the order made by the Inco....