Law: Income Tax Act, 1961

Section: 147,148

Income-tax----Assessment under S.148---Notice---No restriction on number of notices that can be issued under SA48---Notice cannot be issued. if assessment or reassessment proceedings are pending,--Indian Income Tax Act, 1961, Ss. 147 & 148---Constitution of India Art.226. The Assessing Officer can issue any number of notices under section 148 of the Income Tax Act, 1961, provided the conditions stipulated in section 147 are satisfied and if the same is within the period specified under section 149 read with section 151. However, if an assessment is pending either by way of original assessment or by way of reassessment proceedings, the Assessing Officer cannot issue a notice under section 148: Held that, in the instant case, the first notice under section 148 was issued on March 21, 1994, and served on March 29, 1994 and there was time till March 31, 1998, for completion of the assessment. So, on the date of issuance of the second notice on March 25, 1997, the assessments for the two years 1986-87 and 1988-89 were pending. In such circumstances, notice issued under section 148 on March 25, 1997, and the further notices were not valid. Ashok Kumar Dixit v. ITO (1992) 198 ITR 669 (All.); CIT v. Adinarayana Murthy (K.) (1967) 65 ITR 607 (SC); CIT v. Maharaja Pratap .Singh Bahadur of Gidhaur (1961) 41 ITR 421 (SC); Gurdayal Berlia v. CIT (1966) ,62 ITR 494 (Cal.) and Muhammad Ibrahim Maracair (K.E.M.) v. ,CIT (1964) 52 ITR 890 (Mad.). ref. JUDGMENT The matter arises under the Income Tax Act, 1961. The petitioners are partners in a firm under the name and style "Kerala Hides and Skins" engaged in the business of purchase and sale of hides and skins. According to them, their only source of income is the share income from the said firm. The firm filed its return of income for the assessment years 1986-87, 1987-88 and 1988-89. The assessment for the year 1987-88 was completed while the assessment for the years 1986-87 and 1988-89 were pending. Against the assessment order for the year 1987-88, the firm filed an appeal before the Commissioner of Income-tax (Appeals) and that was pending., While so, the firm had moved a settlement petition on September 25, 1991,…

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