1996 (4) TMI 61 - HC - Income Tax

Summary

Issues:
1. Validity of notices issued under section 148 of the Income-tax Act
2. Applicability of the Amnesty Scheme to the returns filed by the assessee

Analysis:

The judgment pertains to applications filed by the Commissioner of Income-tax seeking directions to the Income-tax Appellate Tribunal to refer questions of law to the High Court. The issue revolved around the validity of notices issued under section 148 of the Income-tax Act and the applicability of the Amnesty Scheme to the returns filed by the assessee. The Tribunal had dismissed the Department's appeals, quashing the notices issued under section 148 and deeming the returns filed by the assessee as under the Amnesty Scheme.

The assessment years in question were 1978-79 to 1981-82. A search of the assessee's premises revealed substantial investments in various assets. The Assessing Officer, with the Commissioner's approval, issued notices under section 148 for these years. The assessee had filed returns under the Amnesty Scheme before the service of notices for the first three years, challenging the legality of the notices. The Deputy Commissioner and the Tribunal had conflicting decisions on the matter.

The Department contended that the returns filed by the assessee were time-barred and could not be considered under the Amnesty Scheme post the search. The High Court, after hearing arguments from both sides, directed the Tribunal to refer the questions of law to the court for consideration. The reshaped questions focused on the legality of the notice under section 148 and the applicability of the Amnesty Scheme to the filed returns.

Ultimately, the High Court allowed the applications under section 256(2) and directed the Tribunal to refer the reshaped questions for the court's opinion. The judgment highlighted the legal complexities surrounding the issuance of notices under section 148 and the interpretation of the Amnesty Scheme in the context of the assessee's returns. The decision aimed to clarify these legal issues for further deliberation and resolution.