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TMI Blog1997 (6) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... 243 was bad in law for want of detailed show-cause notice under his seal an signature? (ii) Whether the Tribunal, in the facts and circumstances, should have set aside the matter to the file of the Commissioner of Income-tax with a direction to issue a fresh notice in accordance with law under section 263?" The brief facts which are necessary for the disposal of this reference are that the assessment order dated November 18, 1986, for the assessment year 1985-86 was considered erroneous and prejudicial to the interests of the Revenue. Proceedings under section 263 of the Income-tax Act, 1961, were initiated. The Commissioner of Income-tax sent a telegraphic notice on March 28, 1989, to the assessee for making appearance on March 31, 1989 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... approached the Tribunal for making reference and, accordingly, the aforesaid two questions of law have been referred by the Tribunal for answer of this court. We have heard learned counsel for the parties and perused the record. It is true that under section 263 of the Act, notice has to be sent to the assessee and the notice should contain reasons and, secondly, under section 282, notice has to be served on the person either by post or as if it were a summons issued by the court under the Code of Civil Procedure, 1908. In the present case, no such notice was served either by post or summons was sent as required under the Code of Civil Procedure. The telegram was sent which also did not contain any reason as to how the order is prejudici ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jurisdiction has to be mentioned in the notice. The telegram which was sent to the assessee did not contain any reasons except directing him to appear before that authority, that was also misconceived. Their Lordships of the Calcutta High Court in the case of CIT v. General Trade Agencies [1973] TLR 1383, have taken the view that a show-cause notice issued by the Commissioner did not fairly indicate the grounds used by him for ordering cancellation of the firm's registration and for cancellation of assessments made by the Income-tax Officer. It was also held that the assessee was deprived of fair opportunity to show-cause against proposed action. The Tribunal was thus justified in reversing the Commissioner's order. There Lordships have ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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