COMMISSIONER OF INCOME TAX Vs. BEEFATHUMMA

JUDGEMENT

(1.) AT the instance of the Revenue, the Income-tax Appellate Tribunal (in short, "the Tribunal") has referred the following question of law for the decision of this court :

(2.) THE respondent is an assessee to income-tax. We are concerned with the assessment year 1970-71. THE original assessment was reopened by issue of notice under Section 148 of the Income-tax Act on March 7, 1979. THE notice was served by registered post on March 8, 1979. It was served on the assessee on April 21, 1979. THE assessee contended that proceedings are barred by limitation since the notice issued under Section 148 read with Section 147 of the Act was not "service on or before March 31, 1979," which is the last date of limitation. This plea was not accepted by the assessing authority ; but it was accepted by the first appellate authority by its order dated September 2, 1983. THE Tribunal by its order dated May 30, 1986, concurred with the above decision of the first appellate authority and held that the assessment is patently barred since the notice issued under Section 148 of the Act was served after March 31, 1979. It was held that the proceedings are ab initio invalid. THE assessment made in pursuance of the said notice was cancelled.

(3.) A copy of this judgment under the seal of this court and the signature of the Registrar will be forwarded to the Income-tax Appellate Tribunal, Cochin Bench.