9911796707
TMI Blog2006 (4) TMI 442X X X X Extracts X X X X X X X X Extracts X X X X ..... . 3. The facts of the case are that for the assessment year 1986-87, the return declaring total income at Rs. 16,860 was filed on 26th Sept., 1986. The assessment was completed under section 143(1) on 15th Dec., 1986. In the assessment year 1987-88 return of income was filed on 31st Aug., 1987 declaring total income of Rs. 15,300 and the assessment was completed under section 143(1) on 17th Sept., 1987. The status of the assessee is registered firm. 4. The assessee-firm consisted of following partners, namely: 1.Shri Krishan Lal. 2.Shri Parshotam Lal. 3.Smt. Asha Rani. 4.Shri Radhey Sham. The Assessing Officer observed that it came to his notice that the assessee-firm had got two advance licences under the Duty Exemption S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the CIT(A) vide order dated 25th June, 1998 set aside the assessment orders and remanded both the matters to the file of the Assessing Officer with direction to reframe the assessments afresh after giving the assessee sufficient opportunity of being heard. The assessee pleaded before the CIT(A) that the assessee-firm stood dissolved in 1989 on the death of two of its partners mentioned above and the remaining two partners left of UK and USA in 1989 and remained there till 1998. It was stated that Smt. Asha Rani returned to India in February, 1998. The above facts were corroborated through documentary evidence. It was, therefore, submitted before the CIT(A) that ex parte orders are bad in law and no notice under section 148 was ever se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and 109/Asr/2004, therefore, the assessee got substantial relief. He has, however, submitted that the assessee also filed CO Nos. 12 and 13/Asr/2004 against the Departmental appeals challenging the legality of the reassessments under section 148 of the IT Act. The learned counsel for the assessee accordingly submitted that since the legality of the reassessment proceedings are challenged in cross-objections, therefore, he would not be pressing ITA Nos. 472 and 473/Asr/1998 because the same is raised in the appeals of the assessee as well as in the cross-objections. He, however, submitted that he may be allowed to argue cross-objections. In this view of the matter, the appeals of the assessee it ITA Nos. 472 and 473/Asr/1998 are dismissed a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ven where further enquiry is made after an order of remand, the fresh assessment order that may be passed by the ITO shall continue to remain as a best judgment assessment under section 144." He has submitted that since books of account were already in possession of the Department, therefore, whole basis of the Assessing Officer in passing ex parte assessment orders against the assessee for failure to produce the books of account is unjustified and the CIT(A) rightly quashed the assessment orders. 8. The learned counsel for the assessee in his cross-objections submitted that the CIT(A) should have quashed the assessment orders itself because of non-service of notice under section 148 of the IT Act. The learned Departmental Representat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considered opinion that no useful purpose will be served in prolonging the litigation further. Taking into account totality of facts and circumstances of the case, we confirm the orders of the CIT(A) and reject all the grounds of appeal of the Revenue for both the assessment years. 10. Now coming to the cross-objections filed by the assessee, we find that while deciding the appeals, the CIT(A) vide the first order dated 25th June, 1998 had not quashed the assessments. He had only set aside the assessments with the directions that assessee should be allowed an opportunity to file returns of income and after allowing sufficient opportunity of being heard and for producing documents which the assessee would like to submit. The relevant f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed an application under section 144 ( sic ) of the Act before the Addl. CIT, Range-I, Jalandhar who directed the Assessing Officer vide his order dated 24th Jan., 2001 to allow another opportunity to assessee (to) file returns of income. Thereafter the assessee filed returns in response to notices issued under section 142(1) and also appeared before the Assessing Officer. Thus, the Assessing Officer had complied with the directions of CIT(A) given in the first order for setting aside the assessments. We, therefore, do not find any merit in the grounds of assessee taken in the cross-objections. Accordingly, the orders of the CIT(A) are upheld and the grounds taken in the cross-objections filed by the assessee for the assessment year 1986-8 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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