COMMISSIONER OF INCOME TAX Vs. KHALSA DEWAN

JUDGEMENT

(1.) THE present appeal has been filed by the Revenue against the order dated May 18, 2007 (annexure A -4), passed by the Income Tax Appellate Tribunal, Amritsar Bench, Amritsar, in I.T.A. No. 2(ASR)/2000 for the assessment year 1995 -96 raising the following substantial questions of law:

(2.) THE brief facts out of which the present appeal has arisen are as under:

(3.) AGAINST the above order of the Commissioner of Income Tax (Appeals), Bathinda, the assessee preferred an appeal before the Income Tax Appellate Tribunal, Amritsar, who vide its order dated May 18, 2007, (annexure P -4) in I.T.A. No. 2(ASR)/2000 allowed the appeal and set aside the order of the Commissioner of Income Tax (Appeals) and quashed the intimation sent by the Assessing Officer under Section 143(1)(a) on the ground that the same was illegal and bad in law. While passing the impugned order dated May 18, 2007, the Tribunal held that changing the status of the firm/ trust to an AOP falls outside the ambit and purview of Section 143(1)(a). Even though the trust was not registered with the Commissioner of Income Tax, the assessment could not be made in the status of an AOP under Section 143(1)(a). Moreover, the Assessing Officer could have done so by issuance of notice under Section 143(2) of the Act.