COMMISSIONER OF INCOME TAX Vs. SAMBHUDAYAL DWARKADAS

JUDGEMENT

(1.) THE Commissioner of Income-tax, Bhopal, has filed these four reference applications under Section 256(2) of the Income-tax Act, 1961 (for short "the Act"), seeking direction to state the cases to this court and to refer the common question of law as proposed in these applications arising out of the order dated July 8, 1993, passed in I.T.A. No. 530/Ind of 1991, I.T.A. No. 529/Ind of 1991, I.T.A No. 528/Ind of 1991 and I.T.A. No. 192/Ind of 1991, respectively. THE question of law is extracted below :

(2.) THE facts lie in a narrow compass. THE assessee filed the return of income. THE assessment was framed on the basis of the return under Section 144 of the Act. In appeal, the appellate authority noted that without processing the return filed by the assessee, the Assessing Officer had served notice under Section 148 of the Act. He found that in the circumstances notice under Section 148 was not valid as the assessee had filed the return under Section 139(4) of the Act which was pending with the Assessing Officer when the notice for reassessment was issued. It was, therefore, held that the order of assessment was barred by limitation. THE applicant, therefore, filed appeals before the Tribunal which upheld the order of the first appellate authority. THE applicant then filed the applications seeking statement of the cases and reference of the question. THE applications were rejected. Hence, the Department filed these reference applications.

(3.) ON applications for reference, the Tribunal held as under :