Law:

Section:

Section 143 of the Income-tax Act, 1961 - Assessment - General - Assessment year 1963-64 - Whether section 143 is purely a procedural section laying down procedure for making assessment in various contingencies, and not a substantive one - Held, yes - Whether, however, provisions of section 143(2) are mandatory and non-compliance with these provisions vitiates order of ITO - Held, yes Section 250 of the Income-tax Act, 1961 - Commissioner (Appeals) procedure of - Assessment year 1963-64 - Whether power of setting aside assessment order, where it is illegal, is inherent in any appellate court - Held, yes - Whether, therefore, where AAC opined that mandatory provisions of law had not been followed by ITO, he passed a perfectly legal order setting aside assessment and remanding case to ITO with direction that he should issue notice under section 143(2) and then make de novo assessment after hearing assessee - Held, yes FACTS For the relevant assessment year, the assessee, carrying on business in the manufacture and sale of ruffal and silk, filed his return. The ITO after issue of notice under section 143(2), examined the assessee's case on several dates and found certain cash credits in the books of account. Before the assessment was completed, the assessee filed a revised return. The ITO after examining the books and other materials, assessed him at an enhanced figure. On appeal, the AAC, instead of annulling the assessment, set aside the assessment and remanded the case to the ITO with the direction that he should issue a notice under section 143(2) and then make the assessment after hearing the assessee. On second appeal, the Tribunal held that section 143(3) was merely a procedural section and section 143(2) was mandatory. It further upheld the AAC's order remanding the case to the ITO. On reference : HELD Section 143 lays down procedure to be adopted by the ITO in two different contingencies. Sub-section (1) contemplates cases where the ITO does not doubt the correctness of the return or the materials produced before him by the assessee and accepts the return, in which case it is not necessary for him to issue any notice to the assessee, but he can proceed…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492