Law:

Section:

Section 143 [Corresponding to section 23 of the Indian Income-tax Act, 1922] read with section 297 of the Income-tax Act, 1961 - Assessment - General - Assessment year 1961-62 - Assessee filed return of income before coming into force of the Act of 1961 but ITO completed assessment under section 143(3) to which assessee objected contending that by virtue of section 297(2)(a), proceedings lay under the Act of 1922 and not under the Act of 1961 - Whether although assessment was completed under 1961 Act, it must be attributed to jurisdiction vested in ITO under 1922 Act - Held, yes - Whether assessee had filed appeal against assessment to AAC and second appeal to Tribunal and his application for reference to High Court of question of law arising from Tribunal's order was pending before Tribunal, petitioner had already resorted to an alternative, and equally efficacious and legal remedy and therefore, petitioner should be required to pursue that remedy and should not to be allowed to invoke special jurisdiction of High Court under article 226 - Held, yes FACTS The petitioner was a private limited company carrying on business in cold storage and the manufacture of catechu. For the assessment year 1961-62, the petitioner filed a return of its income of the relevant previous year disclosing a loss of Rs. 1,52,860. The ITO took proceedings under section 23(2) after serving notice under that provision. While the assessment proceeding was yet pending he issued a notice under section 143(2) of the Income-tax Act, 1961, and after affording the petitioner a hearing he completed the assessment by an order dated 26-3-1966. In the assessment order, which was expressed to be under section 143(3) of the Act of 1961, he held that instead of the loss claimed by the petitioner there was an income of Rs. 1,03,848. Against the assessment order the petitioner preferred an appeal. One of the grounds taken by the petitioner was that the ITO had no jurisdiction to proceed under the Act of 1961, and that by virtue of section 297(2)(a) of the Act the proceeding lay under the Act of 1922. It was also urged that the ITO had not afforded sufficient opportunity to the petitioner to explain the…

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