RAM LAL ISHWAR DASS Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THE petitioners pray for a writ in the nature of certiorari quashing an order dated August 26, 1970, of the Income-tax Officer, "A" Ward, Mandi, setting aside an assessment order and re-opening the assessment proceedings.

(2.) THE first petitioner, M/s. Ram Lal Ishwar Dass, is a partnership firm carrying on business at Kulu. THE second petitioner, Shri Balwant Rai, is one of the partners. THE petitioner-firm has been regularly assessed under the Income-tax Act, 1961. In proceedings for the assessment year 1969-70 the petitioners failed to comply with a notice under Section 143(2) and appear on January 5, 1969, and accordingly an ex parte assessment order was made under Section 144 of the Act. THE petitioners applied under Section 146 of the Act for setting aside the ex parte assessment order and re-opening the assessment proceeding. THEy also preferied an -appeal under Section 246 of the ACT, before the Appellate Assistant Commissioner of Income-tax. THE appeal was disposed of first. On June 11, 1970, the Appellate Assistant Commissioner allowed the appeal in part and reduced the assessed income of Rs. 75,470 by Rs. 27,055. THEreafter, when the application under Section 146 of the Act came on before the Income-tax Officer, "A" Ward, Mandi, the petitioners filed an application pointing out that their appeal had been disposed of on the merits by the Appellate Assistant Commissioner and that, therefore, the application under Section 146 of the Act had become infructuous. THE Income-tax Officer, however, took the view that Sections 146 and 250 of the Act were indepen- dent of each other, and, therefore, the mere disposal of the appeal under Section 250 did not make the application under Section 146 infiuctuous. He observed that he could not permit the assessee to withdraw the application. Holding that the assessee had been prevented by sufficient cause from complying with the notice issued under Section 143(2), he made an order dated August 26, 1970, cancelling the assessment order and re-opened the assessment proceeding. By this writ petition, the petitioner prays for relief against that order.

(3.) ACCORDINGLY, the writ petition is allowed, and the order dated August 26, 1970, made by the Incorrfe-tax Officer, 'A' Ward, Mandi, and the proceedings taken consequent thereto are quashed. The petitioners are entitled to their costs, which I assess at Rs. 100 as a single set of costs.