ABDUL MAJID Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The income Tax Appellate Tribunal has referred the following question of law under Section 256 (1) of the Income Tax Act, 1961 (hereinafter referred to as "the Act") relating to the assessment year 1981-82 for opinion to this Court. "1. Whether on the facts and in the circumstances of the case, the Hon'ble ITAT, was in law justified in rejecting the additional grounds challenging the validity of assessment order on the basis of illegal initiation of proceeding Under Section 148 without complying the provision of Section 148(2)?.

(2.) Whether on the facts and in the circumstances of the case, the Hon'ble Tribunal was in law justified in holding that the amendment in the provision of Under Section 139 (8), 215 and 217 instiled with effect from 1.4.85 world be applicable to assessment of earlier years completed after 1.4.75 and so charging of interest in case of assessee Under Section 138 (8) as well as Under Section 217 is perfectly justified as the assessment Under Section 147 has been made for the first time after 1.4.85 and so it is a regular assessment.

(3.) Whether on the facts and in the circumstances of the case, the Hon'ble ITAR was in law justified in treating the assessment of the assessee as regular assessment within the meaning of Section 2 (4) of the I.T. Act, 1961?" 2. The brief facts of the case are that for the assessment year under consideration, a notice under Section 148 of the Act dated 28th February, 1983 was served upon the assessee on 19th March, 1983. In pursuance thereof, return was filed on 10th September, 1984 declaring the total income as nil. The Income Tax Officer has completed the assessment on an income of Rs. 62,450/- vide order dated 19th April, 1986. In the order, interest under Section 139 (8) and Section 217 was also demanded, Assessee filed appeal before the Appellate Assistant Commissioner of Income-tax, Moradabad which was partly allowed Assessee further filed appeal before the Tribunal. Before the Tribunal, the assessee moved an application for the addition of three grounds in the grounds of appeal which are reproduced as follows