COMMISSIONER OF INCOME TAX Vs. SHIV RATAN SONI

JUDGEMENT

(1.) THIS appeal is directed against the order of the Tribunal, Jodhpur Bench, Jodhpur, dt. 26th May, 2003 relating to asst. yr. 1988 -89 deciding ITA No. 1111/Jp/1994 and ITA No. 898/Jp/1995 filed by the respondent -assessee before the Tribunal. There were cross -appeals filed by the assessee to the extent they were aggrieved with the order passed by the CIT(A) in an appeal filed by the assessee against the order of reassessment for the asst. yr. 1988 -89 dt. 30th Nov., 1993.

(2.) THE appeal of the assessee was allowed and that of the Revenue was dismissed by the Tribunal on threefold grounds. Firstly, that prior to amendment of Section 147 w.e.f. 1st April, 1989, it was required under Section 148 that the AO gives to the assessee a notice for filing return of not less than 30 days whereas after the amendment, it was required that the assessee should be given a notice to file return within 30 days. The Tribunal found distinction between the expression 'within 30 days' and 'not less than 30 days' and held that since the reassessment proceeding relating to asst. yr. 1988 -89, which ended prior to the commencement of the amended provisions w.e.f. 1st April, 1989, the amended provisions were not applicable in relation to the assessment already completed. Since notice to file return within '30 days' was of lesser duration than not less than 30 days, it was invalid.

(3.) LASTLY , it was found that before initiating proceedings under Section 147 for the impugned asst. yr. 1988 -89, the reasons for initiating such proceedings were not recorded as required by Sub -section (2) of Section 148. The reasons are purported to have been recorded on 30th Sept., 1991 and notices have been issued on 14th Oct., 1991.