COMMISSIONER OF INCOME TAX Vs. PREMCHAND JAIN

JUDGEMENT

(1.) THIS reference has been made by the Tribunal, Gauhati Bench, Gauhati, ("the Tribunal" hereafter), at the instance of the CIT. The following question of law has been referred to this Court for opinion :

(2.) THE assessee is an individual. The years involved are assessment years 1958 -59 and 1959 -60. The original assessment for the assessment year 1958 -59 was made by the ITO on an income of Rs. 5,301 by order of assessment dt. April 10, 1961. Subsequently, the ITO initiated proceedings for reassessment under S. 147 of the IT Act by issue of a notice under S. 148 to the legal representative of the assessee (as the assessee had died in the meantime). This notice was served on August 6, 1968. The ground on which notice was issued was that, in the opinion of the ITO, the assessee had not furnished at the time of the original assessment true and full particulars of the loans obtained by him from various parties during the relevant assessment year.

(3.) THE assessee preferred an appeal before the AAC, who, on consideration of the facts and circumstances of the case, held the initiation of proceedings for reassessment to be bad as there was no basis for taking such action. The AAC also held that action, if any, could have been taken only under secion 147(b) of the Act which was already barred by limitation at the time the notice was issued. He, therefore, cancelled the assessments under section 147 of the Act.