1. This is a reference under S.256 (1) of the Income-tax Act, 1961. The assessment year concerned is 1963 64; and the accounting period the Malayalam year 1137 M. E. The question referred is:

"Whether on the facts and in the circumstances of the case, there was non-compliance of the provisions of S 142 (3) and if so whether the assessment order passed under S.143 (3) was vitiated?"

2. S.142 of the Income-tax Act, 1961, deals with enquiries before assessments. Sub-section (2) of that section provides that for the purpose of obtaining full information in respect of the income or loss of any person, the Income-tax Officer may make such enquiry as he considers necessary; and sub-section (3):

"The assessee shall, except where the assessment is made under S.144, be given an opportunity of being heard in respect of any material gathered on the basis of any enquiry under sub-section (2) and proposed to be utilised for the purpose of the assessment."

3. We are not concerned with an assessment made under S.144 of the Act. The assessment was under sub-section (3) of S.143.

4. Sub-section (3) of S.142 only gives statutory recognition to a principle of natural justice. It was being obser