1997 (4) TMI 51 - HC - Income Tax

Summary

Issues Involved:
The petitioner seeks quashing of impugned notices dated November 11, 1976, January 18, 1983, and January 28, 1983, u/s Assessing Officer's direction to redo assessment for the year 1949-50.

Details of the Judgment:

1. Delay in Issuing Notices:
The petitioner challenged the notices issued after a considerable lapse of time, arguing that the respondent was unjustified in doing so. The absence of a specific limitation for such assessments was highlighted, emphasizing the need for assessments to be completed within a reasonable time. The court referred to sub-section (2A) of section 153 of the Income-tax Act, which sets a two-year limit for making fresh assessments after setting aside previous orders.

2. Legal Precedents and Department's Intentions:
The court noted a circular from 1968 suggesting assessments set aside in appeal should normally be completed within two years, which influenced the insertion of sub-section (2A) in section 153. Despite the lack of a previous limitation, the Department's intention to expedite assessments was evident. The court cited a case where a notice issued after a 12-year delay was deemed an abuse of power and the proceedings were quashed.

3. Unreasonable Delay and Callousness:
In this case, notices were issued after about 7 years, exceeding the limitation under section 153. The court criticized the respondent's actions as callous and unreasonable, emphasizing the burden on citizens dealing with various activities in their daily lives. The authorities were cautioned against prolonging proceedings indefinitely, considering the complexity of individuals' responsibilities beyond tax matters.

Conclusion:
The court allowed the writ petition, quashing the impugned notices dated November 11, 1976, January 18, 1983, and January 28, 1983, due to the unreasonable delay and callousness displayed by the respondent in handling the assessment process.