Law:

Section:

Section 148, read with section 147, of the Income-tax Act, 1961 - Income escaping assessment - Issue of notice for - Assessment year 1948-49 - Whether Income-tax Officer's jurisdiction to reopen assessment under section 147 depends upon issuance of valid notice - Held, yes - Assessee, was member of Hindu undivided family and carried on joint family business - There was partial partition in joint family and members of family formed partnership, under same name which also carried on business in same premises - Fact of partial partition and constitution of firm were accepted by department - Subsequently, firm, was dissolved and two new firms were constituted at same premises - One, of said two firms, dissolved and assessee acquired absolute right, title, and interest in dissolved firm and carried on business at same premises under same name as sole proprietor thereof - ITO issued notice under section 148 to reopen assessment on assessee - However, said notice did not indicate status of assessee, file number and it was not clear to whom said notice was directed - Whether, on aforesaid facts, notice was vague and invalid, and consequently, it was to be quashed - Held, yes FACTS The assessee was a member of Hindu undivided family carrying on a joint family business. There was a partial partition in joint family and the members of the joint family formed partnership, under the same name and carried on business at the same premises. The fact of the partial partition and the constitution of the firm were accepted by the department and at all material times the same Income-tax Officer continued to assess both the entities, namely, the HUF after partial partition and the partnership business which was a registered one. Later, the said firm was dissolved and two new partnership firms were constituted under two separate deeds of partnership. One, of the said firm, was dissolved and the assessee acquired absolute right, title and interest in the business, name, goodwill and assets and liabilities of the said firm and since then he had been carrying on business in the same premises and under the same name as the sole proprietor thereof. Thereafter, the Income-tax Officer…

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