- (1.) Present appeal under Section 260A of the Income Tax Act, 1961 has been filed by the department against the judgment and order dated 25.04.2005 passed by the Income Tax Appellate Tribunal, Lucknow in ITA No. 742/L/2002 for the assessment year 1997-98.
(2.) The brief facts of the case are that during the assessment year under consideration, the Assessee has filed the return of its income on 26.12.1997 showing the loss of Rs. 57,244/-. A notice under Section 148 of the Act was issued on 17.12.1999. Thereafter, a notice under Section 143(2) of the Act was issued on 22.08.2000 and the assessment was completed on 16.02.2000 at the positive income of Rs. 24,020/-
(3.) Being not satisfied, the Assessee filed an appeal before the First Appellate Authority who has enhanced the assessed income to Rs. 2,43,460/-vide order dated 01.03.2002. Being aggrieved, the Assessee has filed an appeal before the Tribunal, where an additional ground was filed by mentioning that No. notice was issued under Section 143(2) of the Act within a period of one year from the date of return. So, the assessment order was ab initio illegal. The Tribunal while admitting the additional ground accepted the plea of the Assessee. Being dissatisfied, the department has filed the present appeal.;