Law:

Section:

section 139 of the income-tax act, 1961-return of income-assessee filed returns on 17-2-1967 for assessment years 1964-65 and 1965-66 in status of huf pursuant to receipt of notices under section 148 wherein status was not mentioned-ito completed assessments on 28-3-1969-tribunal set aside assessment on the ground that notices not indicating status were defective-whether despite defect in notices, returns filed in time by assessee-huf could be treated as voluntary under section 139(4) and consequently assessments made within prescribed limitation period were valid-held, on facts, yes Facts From the account books seized from the assessee-K's premises, the ITO noticed that income had escaped assessment. Consequently, the ITO decided to reopen the assessments. The notices issued by the ITO under section 148 for the assessment years 1964-65 and 1965-66 had not however indicated the status of K. In response to these notices, K filed on 17-12-1967 the requisite returns in the status of HUF of which he was karta. On the basis of these returns, the ITO completed the assessments on 28-3-1969. On appeal, the assessee-HUF contended that the assessments were illegal andab initio void, because the assessments were completed in the status of HUF, while the status was not indicated in the notices under section 148 and as such they could not be made a valid foundation for making the instant assessments. The AAC held that the notices were defective and invalid and the assessment proceedings based thereon were ab intio void. Consequently, he cancelled both the assessments as the assessments. The Tribunal also held that the notices served on the assessee were defective insofar as the assessee's status was not mentioned therein. In the reference application, the department contended that since the assessee had filed the returns filed within the time allowed under the statute, they could be treated as the returns filed voluntarily under section 139(4) and not as in response t the notice under section 148, and that consequently the assessments made were valid. Being a pure question of law, the Tribunal decided that this was a referable question, though it was not raised before the…

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