9911796707
TMI Blog1983 (12) TMI 117X X X X Extracts X X X X X X X X Extracts X X X X ..... tice under section 175 read with section 144 and section 139(2) of the Income-tax Act, 1961 ('the Act') addressed to 'Smt. Alapati Brahmaramba, wife of late Alapati Bhaskara Ramaiah'. A return was filed on 25-2-1976 in the name in which the notice was issued. The status was shown as HUF. The ITO made an endorsement in the order sheet dated 25-2-1976 mentioning 'assessee's letter stating that the sale of the properties is not yet confirmed. In this view of the matter, no further action is considered necessary as the things stand'. The matters were left to lie there for sometime. 2. Thereafter the ITO took up the assessment for the year 1977-78 and found that Bhaskara Ramaiah had been assessed in the status of HUF consisting of himself and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d was Rs. 6,39,840. 4. The assessee appealed and it was contended before the Commissioner (Appeals) that the assessment as made was invalid because there was no jurisdiction to invoke the provision of section 175. The Commissioner (Appeals) held the order passed by the ITO under section 175 to be invalid and cancelled the same for the following reasons : (i) There is no evidence to show that the appellant was likely to alienate its property for avoiding any tax liability and, therefore, the provisions of section 175 are not applicable in this case ; (ii) The ITO had closed the action under section 175 on 25-2-1976 by his endorsement in the order sheet and, therefore, he could not have once again proceeded under that action without iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der section 175 was valid. 6. The learned counsel for the assessee relied on the findings of the Commissioner (Appeals) and stressed that as initiation of proceedings under section 175 was invalid, the entire assessment would fall to be cancelled. 7. We have considered the rival submissions. Resort could be had to the provisions of section 175 only if it appeared to the ITO during the current assessment that a person was likely to charge, sell, transfer, dispose of, or otherwise part with any of his assets with a view to avoiding payment of any liability under the provisions of the Act. The present was a case where a property of the assessee was being brought to sale in a Court auction for payment of certain debts. The sale was confirme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns for accelerated assessment come into play and not otherwise. In the present case we have held that such provisions were not validly invoked. Under the provisions of section 139(4), a person who has not furnished a return within time allowed to him under sub-section (1) or sub-section (2) of section 139 can file a return before the assessment is made. The present is not a case where the assessee had not furnished the return within the time allowed under section 139(1) or 139(2), the assumption of jurisdiction under section 175 having been held to be void by us. Since the assumption of jurisdiction under section 175 has been held to be void by us, it would not be open even to presume that the provisions of section 174 of the Act would come ..... X X X X Extracts X X X X X X X X Extracts X X X X
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