TMI Blog1981 (12) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Whether the provisions of section 150 of the I.T. Act override the provisions of section. 149 as well as section 151 of the Act, and in the circumstances, whether the notice u/s. 148 of the Act was validly issued ? The assessee for the assessment year 1959-60 had filed two returns one in the status of an " individual " and another in the status of an HUF. The ITO framed two assessments. The substantive assessment was made in the status of an individual and a protective assessment was made taking the status of the assessee as an HUF. The assessee appealed against the assessment order to the AAC. The AAC by order dated August 31, 1970, held that the income could be assessed in the status of the assessee as an HUF and not as an indiv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C recorded the following finding : " The aforesaid facts show that in this case the proceedings u/s. 147(a) were initiated by the ITO to give effect to the directions of the AAC contained in his order No. D- 171/69-70, dated 31 st August, 1970. Hence, in view of the provisions of section 150, the provisions of section 149 for issue of notice u/s. 148 will not apply. However, it is seen that the notice was issued in this case after a lapse of eight years from the end of the assessment year 1959-60. Hence, as laid down in section 151, the ITO should have obtained the sanction of the Central Board of Direct Taxes before issuing a notice to the assessee. Instead of doing that, he has obtained the sanction of the CIT. Section 150 of the I.T. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 148 shall be issued (a) in cases falling under clause (a) of section 147 (i) for the relevant assessment year, if eight years have elapsed from the end of that year, unless the case falls under subclause (ii) ; (ii) for the relevant assessment year, where eight years, but not more than sixteen years, have elapsed from the end of that year, unless the income chargeable to tax which has escaped assessment amounts to or is likely to amount to rupees fifty thousand or more for that year ; (b) in cases falling under clause (b) of section 147, at any time after the expiry of four years from the end of the relevant assessment year. (2) The provisions of sub-section (1) as the issue of notice shall be subject to the provisions of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hed. According to him, s. 151 was totally an independent provision, absolute in its terms and not subject to s. 150. He urged that s. 151 had to be read and applied independently without reference to s. 149 or s. 150 of the Act. According to him s. 151 did not refer to s. 149. Similarly, s. 150 makes no reference to s. 151 though it makes a reference to ss. 149 and 148. Thus, according to Shri Chitale, for deciding whether a notice issued under s. 148 of the Act is valid or not, reference should be confined to the provisions of s. 151 only. Relevant provisions of the Act have been reproduced. The arguments have to be examined in the light of the provisions mentioned about and in the light of the finding of the Tribunal that the assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Board under s. 151 of the Act because the case was fully covered by s. 150(1). In Abdul Rahman's case [1975] 100 ITR 541 (AP), similar objection against the validity of a notice under s. 148 of the Act had been raised by the assessee. Repelling the arguments the court held (headnote): "That the effect of section 150 and sub-section (3) of section 153 read with Explanation (2) is that, if any income is deleted from assessment by the order of a higher authority, on the ground that it is not income of that year, steps may be taken under section 147 to assess it as income of another year, without any limitation prescribed by section 149 as regards the issue of the notice under section 148 or as to the completion of the assessment or reasse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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