- (1.) Present appeal under Section 260A of the Income Tax Act, 1961 has been filed by the department against the judgment and order dated 21.09.2005 passed by the Income Tax Appellate Tribunal, Lucknow in ITA No. 131/L/1991-92 for the assessment year 1997-98. This Court vide order dated 24.03.2006 admitted the appeal on the following substantial question of law: Whether the learned Income Tax Appellate Tribunal was justified in law and on the facts of the case in holding that the proviso to Section 143(2)(ii) is also applicable in the case where return was filed in compliance with the notice Under Section 148.
(2.) The brief facts of the case are that the Assessee drives income from plying the buses and gas tankers. During the assessment year under consideration, the Assessee has purchased new vehicles. The Assessee has filed its return of income on 29.10.1997, which was processed under Section 143(1) of the Income Tax Act on 20.12.1997. Later on, notice under Section 148 was issued on 20.12.1999. The Assessee vide his reply dated 16.02.2000 stated that the returned filed under Section 139(1) may be treated as return filed in compliance to notice under Section 148. Thereafter, A.O. has made additions. The same were affirmed by the first appellate authority. However, before the Tribunal, the Assessee took a legal ground that the notice under Section 143(2) was issued beyond one year from the date of filing of return in response to notice under Section 148. The Tribunal has admitted the said ground and allowed the appeal filed by the Assessee. Being aggrieved, the department has filed the present appeal.
(3.) With this background, we have heard Sri D.D. Chopra, learned Counsel for the department, who admits that the notice under Section 143(2) was issued beyond one year. He submits that this is merely a procedural irregularity and the same is curable. So, he made a request that the impugned order may kindly be quashed.;