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Issues Involved:
1. Validity of the notice and reassessment under section 148 of the Income-tax Act. 2. Impact of the retrospective amendment to section 148 on the validity of the notice. 3. Whether the Tribunal erred in dismissing the appeal as infructuous. Issue-Wise Detailed Analysis: 1. Validity of the Notice and Reassessment under Section 148: The assessing authority issued a reassessment notice under section 148 of the Income-tax Act, calling upon the assessee to file a return within 30 days. This was contrary to the then-existing requirement of providing a period "not being less than 30 days." The reassessment was completed on March 30, 1993. The Commissioner of Income-tax (Appeals) set aside this reassessment on the grounds of insufficient notice period, as per the provision at that time. The Tribunal subsequently dismissed the appeal by the assessing authority as infructuous, given a fresh reassessment notice and order dated July 31, 1996. 2. Impact of the Retrospective Amendment to Section 148: Section 148 was amended by the Finance (No. 2) Act, 1996, with retrospective effect from April 1, 1989, omitting the words "not being less than 30 days." This amendment meant that the original notice issued by the assessing authority, which required the return within 30 days, was valid. The Tribunal failed to consider this retrospective amendment, which was a substantial error of law. The court held that the Tribunal should have applied the amended law as it stood during the hearing of the appeal. 3. Whether the Tribunal Erred in Dismissing the Appeal as Infructuous: The Tribunal dismissed the appeal as infructuous because a fresh reassessment order dated July 31, 1996, had been issued. However, the court noted that an appeal is a continuation of the original proceeding, and the validity of the first reassessment order dated March 30, 1993, was still pending before the Tribunal. The finality of the second reassessment order depended on the outcome of the appeal concerning the first reassessment order. The Tribunal's dismissal of the appeal as infructuous was therefore incorrect, and it should have decided the appeal based on the amended section 148. Conclusion: The court concluded that the Tribunal committed a substantial error of law by not considering the retrospective amendment to section 148 and by dismissing the appeal as infructuous. The court set aside the decisions of the Tribunal and the Commissioner of Income-tax (Appeals) dated February 7, 1995. The appeal was remanded to the Commissioner of Income-tax (Appeals) for a fresh decision on the merits, excluding the contention regarding the notice period under section 148. The court exercised its jurisdiction under section 260A of the Income-tax Act to ensure that the appeal was heard and decided in accordance with the amended law.
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