V.K. Gupta, C.J. - (1.) A very short point is involved for consideration in this case. The petitioner challenges the initiation of proceedings under Section 147 of the Income Tax Act and with regard to the issuance of the Notices in terms of Section 148 of the Income Tax Act, 1961 on the ground that the Assessing Officer has wrongly obtained the approval of the Joint Commissioner before issuing the impugned notices whereas he should have obtained the approval of the Board because that was the requirement of law as it stood in the year 1988, relating to the Assessment Year 1988-89.
(2.) ADMITTEDLY the petitioner received a notice in terms of Section 148 of the Income Tax Act. 1961 (the notice is dated 8.12.1998) whereby the petitioner was informed by the Assessing Officer that he had reasons to believe that his income chargeable to tax for the Assessment Year 1988-89 had escaped assessment within the meaning of Section 147 of the Act and that, therefore, the Assessing Officer proposed to reassess the income for the aforesaid assessment year and accordingly notice under Section 148 of the Act was issued asking the petitioner to deliver to the Assessing Officer within 30 days from the date of service of the notice return in the prescribed form of his Income for the relevant Assessment Year. The petitioner was assessed under Section 143(1) of the Income Tax Act for the Assessment Year 1988-89 and since the proceedings under Section 147 of the Act with respect to the re- assessment of the income were to be initiated by the Assessing Officer, issuance of notice under Section 148 of the Act being a mandatory requirement of law, the said notice was issued. Conditions precedent for issuance of a notice under Section 148 of the Act are to be found in Section 151 of the Act. Section 151, reads thus : "(1) In a case where an assessment under sub-section (3) of Section 143 or Section 147 has been made for the relevant assessment year, no notice shall be issued under Section 148, by an Assessing Officer, who is below the rank of Assistant Commissioner or Deputy Commissioner unless the Joint Commissioner is satisfied on the reasons recorded by such Assessing Officer that it is a fit case for the issue of such notice : Provided that after the expiry of four years from the end of the relevant assessment year, no such notice shall be issued unless the Chief Commissioner or Commissioner is satisfied on the reasons recorded by the Assessing Officer aforesaid, that it is a fit case for the issue of such notice. (2) In a case other than a case falling under sub- section (1), no notice shall be issued under Section 148 by an Assessing Officer, who is below the rank of Joint Commissioner, after the expiry of four years from the end of the relevant assessment year, unless the Joint Commissioner is satisfied on the reasons recorded by such Assessing Officer, that it is a fit case for the issue of such notice."
(3.) WHEREAS Sub-section (1) of Section 151 deals with only such cases where the assessment earlier was made under Section 143(3) or under Section 147 of the Act, subsection (2) deals with all other assessments which were earlier made, but which were sought to be reopened under Section 147 of the Act. In this case, since the assessment for the year 1988-89 was made in terms of Section 143(1) of the Act, we are concerned only with Sub-section (2) of Section 151 of the Act. It is worth noticing that Section 151 of the Act was amended by the Direct Tax Laws (Amendment) Act, 1987. This amendment was to take effect from 1.4.1989. Prior to its amendment, Section 151 stood as under : "151(1). No notice shall be issued under Section 148 of the Act after the expiry of eight years from the end of the relevant assessment year unless the Board is satisfied on the reasons recorded by the Assessing Officer that it is a fit case for issue of such notice. (2) No notice shall be issued under Section 148 after the expiry of four years from the end of the relevant assessment year unless the Chief Commissioner or Commissioner is satisfied on the reasons recorded by the Assessing Officer that it is a fit case for the issue of such notice." ;