COMMISSIONER OF INCOME TAX Vs. SATTANDAS MOHANDAS SIDHI

JUDGEMENT

(1.) THIS is a reference under Section 256(1) of the Income-tax Act at the instance of the Revenue and the following two questions of law have been referred by the Tribunal for answer of this court :

(2.) THE brief facts which are necessary for the disposal of this reference are that the assessment order dated November 18, 1986, for the assessment year 1985-86 was considered erroneous and prejudicial to the interests of the Revenue. Proceedings under Section 263 of the Income-tax Act, 1961, were initiated. THE Commissioner of Income-tax sent a telegraphic notice on March 28, 1989, to the assessee for making appearance on March 31, 1989, to show cause as to why the assessment order should not be cancelled. THE Commissioner was obviously in hot haste since the limitation was to expire on March 31, 1989. THE assessee acknowledged the receipt of the telegram and requested for an adjournment by telegram, which was refused. An order under Section 263 of the Act was passed on March 31, 1989.

(3.) WE have heard learned counsel for the parties and perused the record.