1988 (6) TMI 29

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... , other records and properties worth. Rs. 5,000, The assessee, therefore, was unable to submit the books of account at the inquiry by the Income-tax Officer. The assessment orders for the years 1962-63 and 1963-64 were finalised without books of account under section 144 of the Act. The assessee filed, unsuccessfully, appeals before the Appellate Assistant Commissioner and before the Appellate Tribunal. Later, under subsection (2) of section 256 of the Income-tax Act, the following two questions are referred to this court : "(1) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the best judgment assessments under section 144(b) of the Income-tax Act, 1961, for the assessment years 1962- .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... The Revenue in this case argued that the assessment is riot made under clause (c) of section 144 of the Income-tax Act and that, therefore, no notice need be served on the assessee. Speaking of procedure under the Act, the assessee filed the return and the return was not accepted by the Incometax Officer. He held an inquiry and passed an assessment order. The assessee contends that clause (c) of section 144 applies as the return filed by the assessee is varied or concluded to the detriment of the assessee and that, therefore, he is entitled to a notice under section 143(2) of the Act. At the relevant time section 143 of the Act, sub-section (2), was in the following terms : "(2) Where a return has been made under section 139 but the Incom .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ssessment orders of the Income-tax Officer, is not sustainable in law. Violation of the principles of natural justice, and, more particularly, violation of statutory principles of natural justice, as in the instant case, takes away the jurisdiction of the authority concerned to proceed with the proceedings and make the assessment orders and necessarily invalidates the proceedings and the orders passed therein. If you want to assess the estate of the deceased assessee, the estate must be fully represented by impleading all the legal representatives and serving of notices on all of them who represent the entire estate. If you do not do that, assessment proceedings and assessment orders passed therein will cease to be valid proceedings and val .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X