TMI Blog2007 (1) TMI 139X X X X Extracts X X X X X X X X Extracts X X X X ..... purchase and repair of radios. On September 21, 1970, original assessment was made at Rs. 8,010 by the Income-tax Officer under section 143(1) of the Income-tax Act, 1961 (for brevity "the Act") on the basis of the return of income filed by the assessee on August 23, 1969, declaring its income to be Rs. 7,959. The Assessing Officer completed the assessment by issuing notice under section 148 of the Act to the assessee on June 2, 1973. The reasons recorded before issue of notice under section 148 of the Act were: "Issue notice under section 148 of the Act for the assessment year 1969-70 as I have reasons to believe that the income has been under assessed for this year. (Sd.) . . . . . . . . . . Income-tax Officer" The assessee replie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Appellate Commissioner as reproduced by the Tribunal reads as under: "I have gone through the assessment records. The reasons recorded before issue of notice under section 148 are as under: June 2, 1973 "Issue notice under section 148 for the assessment year 1969-70 as I have reasons to believe that the income has been underassessed for this year. (Sd.) . . . . . . . . . . . Income-tax Officer" It appears that there were some certain complaints against the assessee about tax evasion and the Income-tax Officer issued notice under section 148 of the Act resting his belief on the complaints. No verification of the facts in the complaints was however, made. The Appellate Assistant Commissioner in his order dated February 20, 197 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der passed by the Income-tax Officer. The issue of notice under section 148 and subsequent passing of the order under section 143(3)/147 are therefore annulled." After serving notice and filing of reply it was submitted on behalf of the assessee that notice under section 148 of the Act could not be issued as it had already been annulled by the Appellate Assistant Commissioner, Patiala Range, Patiala. In support of his submission, reliance was placed on a Division Bench judgment of the Allahabad High Court in the case of Manoo Lal Kedarnath v. UOI [1978] 114 ITR 884. However, the Assessing Officer rejected the submission made by the assessee by observing that when the earlier notice under section 148 of the Act was issued and the Income-ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment order by the Assessing Officer was sought to be justified on the ground that he had asked for, and had obtained the sanction of the Commissioner for reassessment of the proceedings. The Tribunal has concluded in paragraph 10 as under: "From the facts stated above, it is clear that even the Commissioner did not apply his mind properly to come to a conclusion whether there was escapement of income because the very reasons on the basis of which reassessment earlier had been struck down by the Appellate Assistant Commissioner were taken again to initiate second reassessment proceedings. In our opinion, the case is, therefore, directly covered by the judgment of the Allahabad High Court in which the hon'ble court has relied upon the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income has escaped assessment. The earlier finding is comprehensive enough to negative 'any such reason' on the part of the Income-tax Officer. That finding is binding on him. He could not on the same facts reopen the proceedings on the ground that he had new information. If he did so, it would be a clear attempt to circumvent the said order, which had become final. . . " The ratio of the judgment of the hon'ble Supreme Court has been followed by the Division Bench of the Allahabad High Court in the case of Manoo Lal Kedarnath [1978] 114 ITR 884. In view of the above enunciation of law, we are of the view that the question posed at the outset has to be answered against the Revenue and in favour of the assessee. Accordingly the referenc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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