- (1.) THE matter here pertains to the assessment year 1963-64.
(2.) THE original assessment for the assessment year in question was completed on March 21, 1968. This assessment was, however, later reopened under Section 147 (a) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), on the ground that the Income-tax Officer had reason to believe that certain income of the assessee-company chargeable to tax had escaped assessment. As the assessee, despite several opportunities, failed to account for the imports on the basis of which the Income-tax Officer had come to believe that certain income had escaped assessment, he proceeded to frame the assessment under Section 144 of the Act on September 12, 1973. Earlier, a specific notice had been served upon the assessee under Section 142 (1) of the Act, on August 17, 1973, which the assessee had not complied with.
(3.) THE assessee thereafter filed an application under Section 146 of the Act against the assessment framed by the Income-tax Officer on September 12, 1973. This was rejected by the order of February 25, 1974. No appeal was thereafter filed against this order, but the assessee proceeded to file an appeal against the assessment order of September 12, 1973, the main ground urged being that no notice had been served upon it under Section 143 (2) of the Act and the assessment framed was, therefore, a nullity. This contention prevailed with the Tribunal and the reassessment was consequently cancelled. It is in this factual background that the following questions of law have now been referred to this court for its opinion : " (1) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in allowing the assessee to raise an objection regarding the non-issuing of notice under Section 143 (2) by the Income-tax Officer despite the assessee not having pursued its application under Section 146 after the Income-tax Officer stage ? (2) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the assessment framed was contrary to law and had to be struck down ? (3) Whether, on the facts and in the circumstances of the case and in any view of the matter, the Appellate Tribunal was justified in quashing the assessment instead of merely setting aside the same with a direction to redo it from the point of irregularity or illegality, if any?";