COMMISSIONER OF INCOME TAX Vs. K.G. MADAN

JUDGEMENT

(1.) THIS reference under s. 256(1) of the IT Act, 1961 (for short "the Act"), is at the instance of the Revenue. The Income - tax Appellate Tribunal, Delhi Bench "E" (hereinafter to be referred as the Tribunal), has referred the following question for the opinion of this Court :

(2.) "Whether, on the facts and circumstances of the case, the Tribunal was right in law in holding that the proceedings under s. 148 were not validly initiated - of Rs. 20,000 was declared. This return was beyond the time as allowed under s. 139 of the Act for filing of voluntary return. The AO thus, issued a notice under s. 148 of the Act. The assessee challenged the validity of the initiation of proceedings under s. 148 before the Commissioner of Income -tax (Appeals) [hereinafter to be referred to as "CIT(A)"]. The CIT(A) rejected the claim of the assessee. However, appeal of the assessee was allowed by the Tribunal and initiation of proceedings under s. 148 was held to be bad in law. Accordingly, the assessment made in pursuance to the notice issued thereunder was quashed.

(3.) SHRI Rajesh Bindal, learned counsel appearing for the Revenue, submitted that the Tribunal has erred in quashing the assessment order and holding that proceedings under s. 148 of the Act had not been properly initiated.