Suhas Chandra Sen, J. - (1.) The Income-tax Appellate Tribunal has referred the following two questions of law to this court under Section 256(1) of the I.T. Act, 1961 : "1. Whether, on the facts and in the circumstances of the case, the return of income furnished by the assessee was a valid return of income within the meaning of Section 139(4) read with Section 139(1) of the I.T. Act, 1961 ?
(2.) "If the answer to question No. 1 is in the affirmative, then, whether, on the facts and in the circumstances of the case, the Tribunal was correct in cancelling the assessment made by the Income-tax Officer within four years from the end of the relevant assessment year on the basis of the return of income furnished by the assessee as void ?" 2. The facts briefly are that there was a search in the premises of the assessee in December, 1965, and some account books were seized therefrom. On a perusal of those books the ITO came to believe that the income of the assessee from pawn-broking business for the assessment years 1964-65 and 1965-66 had escaped assessment. He, therefore, served notices under Section 148 for these two years on the assessee on 3rd February, 1967. No status was shown in those notices. The notices also did not have any column for that purpose. In response to these notices the assessee filed returns on 17th February, 1967, showing the status of HUF on which the ITO completed the assessments determining the total income at Rs. 34,759 for the assessment year 1964-65 and Rs. 29,507 for the assessment year 1965-66.
(3.) The assessee filed appeals before the AAC and contended that the assessments were illegal and ab initio void. It was pointed out that whereas the assessments were completed in the status of HUF, the notices under Section 148 were issued in the name of Sri Keshardeo Bubna without giving any indication of the status of the assessee. It was argued that the notices under Section 148 which were addressed to the individual, Sri Keshardeo Bubna, could not be made a valid foundation for proceedings to reassess the income of the HUF of which Sri Bubna was the karta. The AAC held that the notices were defective and not valid in the eye of law and as such the assessment proceedings based on the same were ab initio void. He accordingly cancelled both the assessments.;