- (1.) THE Tribunal, Jaipur Bench, Jaipur had submitted the statement of case along with following questions of law to be answered by this Court on reference application moved by the assessee as well as Revenue in relation to the order passed by the Tribunal in ITA No. 2250/Jp/1995 relating to the asst. yr. 1984 -85: 1. Whether, in the facts and circumstances of the case, the Tribunal was right in holding that the AO had not misread the explanatory note and, therefore, had a reason to believe that income had escaped assessment ? 2. Whether, in the facts and circumstances of the case, the Tribunal was right in holding the proceedings to be valid despite the fact that the approval of Dy. CIT was not obtained by the AO ? 3. Whether, in the facts and circumstances of the case, the Tribunal was right in holding the proceedings to be valid by holding that the service on the adult member of the family was a sufficient notice ? 4. Whether, in the facts and circumstances of the case, the Tribunal was justified in holding the proceedings to be invalid on the ground that the period of less than 30 days was given to furnish the return of income despite the provisions ofsection 292B of the Act?
(2.) THE facts as appear from the statement of the case are that for asst. yr. 1990 -91, the assessee has disclosed sale of his residential house and claimed exemption from inclusion of the capital gains in its taxable income undersection 54 of the IT Act, 1961. At the foot of computation of total income for the asst. yr. 1991, an explanatory note was appended by the assessee. On the basis of the aforesaid information disclosed by the assessee himself that he has made certain investments in construction of his residential house on the land which he acquired in 1961 and the investment in construction of house continued upto year 1983 -84 that the total investment shown by the assessee in his house was to the tune of Rs. 3,00,000, the AO issued a notice undersection 148 r/w Section 147 of the IT Act, 1961 in relation to the asst. yr. 1984 -85 for assessment/reassessment of the income of the respondent -assessee for the said assessment year. As per the notice issued for reassessment under Section 148 for initiating proceedings undersection 147, the assessee was required to submit his return of income for asst. yr. 1984 -85 within 30 days of receipt of notice. The notice was served on the son of the assessee who was adult member of the family of the assesses. Before initiating proceedings undersection 148, the AO has sought approval of the CIT through Dy. CIT.
(3.) IN the assessment order passed by the AO for asst. yr. 1984 -85 in pursuance of proceedings initiated undersection 148, the AO quoted the explanation appended to the return of the assessee for asst. yr. 1990 -91. In the reproduction of the said explanatory note some line was missed, which conveyed that house was completed in 1979. The assessee has contended that this exclusion was deliberate to assume jurisdiction undersection 148 because after noticing the excluded part of explanation appended to return of 1990 -91, no belief could be formed about escapement of income from assessment for asst. yr. 1984 -85.;