COMMISSIONER OF INCOME TAX Vs. AGRO ENGINEERS

JUDGEMENT

(1.) THE appeal has been admitted on 9th April, 2001, in terms of the following question :

(2.) THE relevant assessment year is 1990-91. THE assessee has filed the return of income declaring income at Rs. 98,108. THEreafter notice under s. 143(2) of the IT Act was issued more than 10 times, but assessee did not respond to the notice. THEreafter the AO has made the assessment order under s. 144 of the IT Act, 1961, and estimated the income of the assessee at Rs. 3,52,947 and apportioned it amongst the partners as referred in the assessment order.

(3.) IT is true that proviso to sub-s. (1) of s. 144 requires that before framing the assessment under s. 144, an opportunity should be given to the assessee. As 10 notices under s. 143(2) were issued to the assessee but in spite of service he did not respond. Though AO has committed a mistake by not issuing the fresh notice for assessment under s. 144 of the Act that does not mean that assessee is not liable for the tax on its income. If in cases opportunity has not been given either required under statute or required under principles of natural justice, it did not make any difference but fact remains that when the income has not been assessed properly, the only proper course is that income should be assessed properly and in accordance with law.