K.N.Seth, J. - (1.) The Income-tax Appellate Tribunal under Section 256(2) of the I.T. Act, has referred the following question to this court for opinion : "Whether, on the facts and in the circumstances of the case, the Tribunal was legally justified in holding that the notice issued under Section 148 of the Income-tax Act, 1961, to the assessee was barred by time ?" The question relates to the income-tax assessment of M/s. Goel Brothers for the assessment years 1958-59, 1959-60 and 1960-61. M/s. Goel Brothers had filed income-tax return for the aforesaid years in the status of a firm. The ITO took the view that the business carried on in the name of M/s. Goel Brothers actually belonged to M/s. Kanodia Brothers and, consequently, the income returned by M/s. Goel Brothers was included in the income of Kanodia Brothers while making their assessments. Protective assessments were, however, made on M/s. Goel Brothers for all these years in the status of an unregistered firm.
(2.) M/s. Kanodia Brothers as well as M/s. Goel Brothers filed appeals to the AAC. M/s. Kanodia Brothers pleaded that there was no justification for holding that the business carried on by M/s. Goel Brothers was theirs M/s. Goel Brothers claimed that having assessed their income in the hands of M/s. Kanodia Brothers. there was no justification for assessing the same income in their hands. The AAC upheld the finding of the ITO that the business carried on in the name of M/s. Goel Brothers was in fact the business of M/s. Kanodia Brothers. The AAC accepted the contention of M/s. Goel Brothers that there was no justification for assessing the same income again in their hands and accordingly annulled the assessments made on M/s. Goel Brothers for the aforesaid three years.
(3.) M/s. Kanodia Brothers challenged the order of the AAC before the Tribunal. By its order dated September 29, 1969, the Tribunal held that the income of M/s. Goel Brothers could not be included in the income of M/s. Kanodia Brothers.;