B. P. JEEVAN REDDY, CJ.

( 1 ) UNDER Section 256 (2) of the Income-tax Act, 1961, the following question has been referred by the Income-tax Appellate Tribunal :

"whether, on the facts and in the circumstances of the case, the notice under Section 148 of the act, dated September 10, 1971, and served on October 23, 1971, was valid and operative ?"

( 2 ) WITH respect to the assessment year 1965-66, the Income-tax Officer proposed to reopen the assessment. He issued notice under Section 148 on September 10, 1971. It was actually served on October 23, 1971. Between these two dates, the case was transferred from the Income-tax officer who issued the notice to another Income-tax Officer. One of the questions urged before the Tribunal and which is the only question now relevant before us was whether the order of transfer is valid. In short, the argument of the assessee was that a proceeding under Section 148 can be said to have commenced in law only when the notice thereunder is served upon the assessee ; mere issuance of notice does not amount to initiation of the case. On the other hand, the Departments case was that once a notice under Section 148 is issued, the case is commenced and tran

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