COMMISSIONER OF INCOME TAX Vs. TARACHAND KHUSHIRAM

JUDGEMENT

(1.) THIS is a reference under Section 255 (1) of the Income Tax Act, 1961 (for short 'the Act' ).

(2.) THE facts as stated in the statement of case drawn up by the Income Tax Appellate Tribunal, Indore Bench, (for short the Tribunal) are that on the basis of a Departmental survey, notices under Section 148 of the Act were issued to the assessee/respondent for the Assessment Years 1979-80, 1980-81, 1981-82 and 1982-83. In pursuance to the said notices, the assessee. filed returns of income on 25. 3. 1986 and thereafter filed revised returns on 8. 12. 1986 and claimed that the returns have been filed under the Amnesty Scheme. The proceedings of assessment were taken up on 10. 3. 1987 and additions of Rs. 2500/-, Rs. 3500/-, Rs. 4500/- and Rs. 4500/- were made for the Assessment Years 1979-80, 1980-81, 1981-82 and 1982-83 and it was stated in the assessment orders chat the assessee had agreed to the additions. The assessment orders, however, were nor served on the assessee. The assessee then received show cause notices on 4. 7. 1988 under Section 221 of the Act for the Assessment Years 1979-80, 1980-81 and 1981-82 by which he was required to show cause as to why penalty should not be levied on him for non-payment of the assessed tax. The assessee replied in his letter dated 14. 7. 1988 to the Assessing Officer that the assessment orders have not been received by him. The assessee also received notices dated 26. 7. 1988 to show cause as to why penalties under Sections 273 (2) (b) and Section 271 (1) (a) of the Act and Section 10 (1) of the C. D. S. Act should not be levied. The assessee in his reply dated 5. 8. 1988 informed the Assessing Officer that the assessment orders have not been served upon him.

(3.) THEREAFTER, the assessment orders for the Assessment Years 1979-80, 1980-81 and 1981-82 were served on the assessee on 26. 8. 1988 and the assessment order for the Assessment Year 1982-83 was served on him on 16. 5. 1989. These orders were accompanied by show cause notices for levy of penalty under Section 271 (1) (a) of the Act and the date of said notices were stated to be 30. 11. 1987, but the date of hearing was shown as 20. 9. 1988