Law: Income Tax Act, 1922

Section: 23,23(2)

(a) Income-tax Act (XI of 1922)---S. 23-Income-tax-Returns-Provisions of S. 23(2) of Act­ Mandatory in nature-Income-tax Officer doubting correctness of any return submitted by an assessee, incumbent upon him to serve a notice on assessee requiring him on a specified date, either to enter his appearance in his office or lead evidence in support of his return. (b) Income-tax Act (XI of 1922)- -----S. 23(2)--Income-tax-Generally in a civil suit when a defendant has been served and does not appear, Court may proceed in his absence but Court not directed to make an 'ex parte' order--Fact of its being a proceeding ex parse to be recorded in minutes of proceedings but such merely a statement of fact and not an order in sense of 'ex parte decree' or 'ex parte order' which Court authorized to make under raw. (c) Income tax Act (XI of 1912)----- ----S. 23(2)-Income-tax-Income-tax Officer not believing return to be correct and complete, such Officer bound to send a notice to assessee providing him an opportunity of being heard to justify return submitted by him by attending Officer's office or producing evidence-­Income-tax Officer not serving requisite notice on assessee and proceeding to make his own , such assessment, held, not sustainable in eye of law on account of non-compliance of law providing statutory right of audience to assessee on adjourned date. JUDGMENT KARRAR HUSSAIN ZAIDI, J. -This is a reference under section 66 (1) of Income-tax Act, 1922, on a point of law arising in the case in the follow­ing circumstances. 2. The return was filed by the assessee and the statutory notices under sections 22(4) and 23(2) of the Income-tax Act were issued in the name of assessee but the same could not be served upon him by the process-server. 3. The assessment year is 1970-71 and the assessee is a Contractor Firm known as Messrs Sakhi Contractors & Engineers, Multan. The Income-tax Officer again directed for the issuance of notices under sections 22(4) and 23(2) of the Income-tax Act for 2-12-1971 in the name of assessee under a registered post but the notices were received back as undelivered on account of refusal on the part of the assessee with following remarks…

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