BHUPINDER SINGH BHATIA Vs. COMMISSIONER OF GIFT TAX

JUDGEMENT

(1.) AT the instance of assessee, the following question has been referred by the Income-tax Appellate Tribunal, Delhi Bench D ("Tribunal" in short) under s. 26(1) of the GT Act, 1958 (`the Act') for opinion of this Court :

(2.) FACTUAL position in a nutshell is as follows : Assessee is an individual. The AO issued notice under s. 16(1) of the Act and according to him notice was served on the assessee on 11th Feb., 1983. As the assessee did not file return within thirty days, the AO continued with the proceedings. In response to the statutory notice, the assessee, along with his advocate, appeared before the AO on two occasions during the month of May, 1986 praying for adjournment, which was granted. On 11th June, 1986, a letter was delivered personally to the AO stating that no notice under s. 13(2) of the Act was received by the assessee and, therefore, time for assessment had expired. The AO was of the view that though notice under s. 13(2) of the Act was not issued, notice under s. 16(1) of the Act was served upon the assessee. Accordingly, assessment was completed under s. 15(5) r/w s. 16(1)(a) of the Act. Matter was carried in appeal before the Appellate Assistant Commissioner (`AAC' in short). Report submitted by the AO was considered by the AAC with regard to the question regarding service of notice. He came to hold that notice was issued and served upon the assessee. In fact, assessee had responded to the notice and had attended before the GTO. Matter was carried in further appeal before the Tribunal. Considering the material on record, the Tribunal came to hold that there was valid service of notice. On being moved for reference, the question as set out above has been referred for opinion of this Court.