1990 (3) TMI 56 - HC - Income Tax

Summary

Issues: Validity of notice under section 148 for filing return in Form No. 3A, reopening assessment under section 146 for assessment year 1971-72.

Validity of Notice under Section 148:
The case involved a tax reference under section 256(1) of the Income-tax Act, 1961, regarding the validity of a notice issued under section 148. The notice called upon the assessee to file a return in Form No. 3A, which the assessee challenged as invalid. The court examined the notice and found that it did not mandate the filing of a return in Form No. 3A. The court emphasized that even if the assessee believed the notice was invalid, it could have submitted a return and raised the issue with the tax authorities. The court concluded that the notice under section 148 was valid, as there was no indication in the notice requiring the filing of an inappropriate form.

Reopening of Assessment under Section 146:
The assessment for the year 1971-72 was closed initially as "N. A." based on the return filed by the assessee in Form No. 3. Subsequently, the Income-tax Officer issued a notice under section 148 as he believed income had escaped assessment due to donations received by the assessee. The assessee failed to comply with the notices under sections 148 and 142(1), leading to an ex parte assessment under section 144. The assessee sought to reopen the assessment under section 146, but the request was denied by the Income-tax Officer and upheld by the Appellate Assistant Commissioner and the Tribunal. The court noted that the assessee did not establish valid grounds for reopening the assessment under section 146. The court highlighted that the assessee did not demonstrate sufficient cause for non-compliance with notices or for not filing the return under section 139(2). The court concluded that the refusal to reopen the assessment was justified, and the question referred to the court was answered in the negative, against the assessee.

In summary, the High Court of Madras ruled that the notice issued under section 148 for filing a return in Form No. 3A was valid, as it did not mandate the use of an inappropriate form. Additionally, the court found that the assessee failed to provide valid grounds for reopening the assessment under section 146 for the assessment year 1971-72. The court emphasized the importance of compliance with statutory provisions and the need to establish sufficient cause for non-compliance with notices under the Income-tax Act.