UNIVERSAL BOOK STALL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) AT the instance of the assessee, the following questions have been referred by the Income-tax Appellate Tribunal, Kanpur, for our opinion :

(2.) THE assessee is a registered firm. Its original assessment for the assessment year 1965-66 was completed on a total income of Rs. 67,200. THE total income of the assessee was finally assessed at Rs. 51,127. Later on, the Income-tax Officer learnt that the Income-tax Officer, Delhi, had held the business of Messrs. U. B. S. Publishers and Distributors to be the branch business of the assessee-firm. On receipt of this information, he initiated action under Section 147(a) against the assessee and served on it a notice under Section 148 of the Income-tax Act, 1961.

(3.) THE validity of the assessment was also challenged on the ground that the assumption of jurisdiction under Section 147 was unauthorised and illegal. THE Appellate Assistant Commissioner accepted the submissions of the assessee and observed that the Income tax Appellate Tribunal, Delhi, vide its order dated September 17, 1974, in I. T. A. No. 4423/ Delhi of 1970-71, having held that the above-mentioned Delhi firm was a genuine concern and further that the Department, not having filed any reference application against that order of the Tribunal, the matter became final. That being so, the Appellate Assistant Commissioner observed that the very foundation on the basis of which the reassessment proceedings were initiated against the assessee had disappeared. He, accordingly, annulled the assessment.