Section 260A of the Income-tax Act, 1961

Last updated: 02 April 2008

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Court :
SUPREME COURT OF INDIA

Brief :

Citation :
L. N. Hota & Co. v Commissioner of Income-tax S.B. SINHAN AND ARJIT SINGH BEDI, J. CIVIL APPEAL NO. 2101 OF 2008 ARISING OUT OF SLP(C) NO. 18971 OF 2006 March 26, 2008

SUPREME COURT OF INDIA L. N. Hota & Co. v Commissioner of Income-tax S.B. SINHAN AND ARJIT SINGH BEDI, J. CIVIL APPEAL NO. 2101 OF 2008 ARISING OUT OF SLP(C) NO. 18971 OF 2006 March 26, 2008 Section 260A of the Income-tax Act, 1961 - High Court - Appeals to - Assessment year 1997-98 - Pursuant to a notice under section 148, assessee filed its return whereafter, Assessing Officer issued a notice under section 142(1) and completed assessment estimating income of assessee from business by applying provisions of section 145 - On appeal, Commissioner (Appeals) did not adjudicate issue of legality of assessment, but nevertheless maintained order of Assessing Officer - On second appeal, Tribunal rejected primary prayer of assessee that assessment made without issuance of notice under section 143(2) within a period of one year was invalid but on facts of case, observed that some reconsideration was called for and, accordingly, remitted matter to Assessing Officer for a fresh look. Assessing Officer, thereupon, made a fresh assessment under section 143(3)/254 - On appeal, under section 260A High Court held that as assessment order had not come about by way of scrutiny, provisions of section 143(2) would not be applicable and as such there was no justification for Court in entertaining matter under section 260A - Whether though question of applicability of section 143(2) was specifically raised throughout, yet prima facie, no finding based on law had been recorded and, therefore, matter was to be remitted to High Court for a fresh decision in accordance with law - Held, yes Case review :- Decision of the Orissa High Court set aside.