TMI Blog1974 (3) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... hin the time allowed by sections 139(1) and 139(2) of the Income-tax Act, 1961. He filed his return of income on 28th March, 1969, and this return would be a valid return in view of section 139(4) and (8). However, the Income-tax Officer who was oblivious of this provision treated the return dated 28th March, 1969, as invalid as it was, according to him, outside the period prescribed by section 139(3). No order was passed by him on the said return. He proceeded to issue a notice under section 148 on 9th March, 1970, in response to which the assessee filed a return on the same day declaring the loss of ₹ 4,128 as per the original return. It may be mentioned that in the original return dated 28th March, 1969, the same amount of loss had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner. The assessee then moved an application under section 254(2) for rectification of its order dated 6th April, 1972, rejecting its appeal with regard to grounds Nos. 2 to 5. This application was rejected by the Tribunal on 6th September, 1972. The assessee then moved an application before the Income-tax Appellate Tribunal under section 256(1) requiring it to state the question of law already referred to for our opinion. This application was allowed by the Tribunal and that is how the matter has been placed before us. The contention of the learned counsel for the assessee is that the notice under section 148 was invalid. The argument proceeds thus : The assessees had not filed his return as required by section 139, sub-sections ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 147. If-- (a) the Income-tax Officer has reason to believe that, by reason of the omission or failure on the part of an assessee to make a return under section 139 for any assessment year to the Income-tax Officer, or to disclose fully and truly all material facts necessary for his assessment for that year, income chargeable to tax has escaped assessment for that year, or (b) notwithstanding that there has been no omission or failure as mentioned in clause (a) on the part of the assessee, the Income-tax Officer has in consequence of information in his possession reason to believe that income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess or reasses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stant Commissioner in his order declining to assess the income of the Hindu undivided family operated to lift the bar of limitation as regards the assessment of income of the separated members by the application of the principle of the judgments of this court in Income-tax Officer v. Murlidhar Bhagwan Das and N. Kt. Sivalingam Chettiar v. Commissioner of Income-tax. In our opinion, the orders passed by the income-tax authorities and confirmed by the Tribunal suffer from a fundamental defect. As we have already stated, Karuppan Chettiar submitted returns of his income in his individual capacity for the years 1950-51, 1951-52 and 1952-53 in response to the notice issued under section 22(2) of the Act. By his order dated June 18, 1953, the Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e not been properly and legally proceeded with. In the case before us the order of the Income-tax Officer dated June 18, 1953, should be interpreted in the light of circumstances in which that order was passed. So interpreted, it appears to us that the Income-tax Officer did not intend to conclude the proceedings before him. It follows, therefore, that there is no disposal of the voluntary returns made by the respondent for the assessment years 1950-51, 1951-52 and 1952-53. It is manifest that the assessment proceedings under section 34(1) of the Act for the aforesaid three years are invalid. The matter has been put beyond any doubt by the Supreme Court in Commissioner of Income-tax v. Kurban Hussain Ibrahimji Mithiborwala, wherein it i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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