MOHD. AYUB Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) The present appeal has been filed under section 260A of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), against the order dated April 20, 2004, passed by the Income-tax Appellate Tribunal, Allahabad. The appeal has been admitted on the following substantial questions of law :

(2.) We have heard Shri Shakeel Ahmad, Learned Counsel for the appellant and Shri Dhananjay Awasthi, learned standing counsel appearing for the Revenue.

(3.) Shri Shakeel Ahmad submitted that a composite notice under section 148 of the Act is not contemplated in respect of four assessment years, i.e., 1994-95 to 1997-98 as each assessment year is an independent unit by itself and in respect of each assessment year proceedings have to be taken separately by issuance of notice under section 148 of the Act. He thus submitted that the assessment made under section 147/148 of the Act is wholly without jurisdiction and liable to be set aside. He further submitted that no notice under section 143(2) of the Act had been issued to the appellant in the absence of which the proceedings are even otherwise vitiated. On the merits he submitted that the Tribunal had not decided the question regarding the taxability of the incentive bonus. Shri Dhananjay Awasthi submitted that as the assessee was the same and the issue involved, which related to the escapement of the assessment, the Assessing Officer was perfectly justified in issuing one composite notice for all the four assessment years and, therefore, the proceedings have been validly initiated. He further submitted that the notice/letter dated January 24, 2001, conformed substantively to the requirement of section 143(2) of the Act and even otherwise saved by section 292B of the Act. So far as the question of taxability of incentive bonus is concerned, he submitted that this question was not argued before the Tribunal and, therefore, the Tribunal had rightly not gone into.