1985 (5) TMI 99

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..... assessment order prepared by the ITO. 8-4-1982-- date of service of the draft assessment order on the assessee. 13-4-1982-- date of objections filed by the assessee to the draft assessment order. 15-4-1982-- date on which the draft assessment order was forwarded by the ITO to the IAC along with the assessee's objections.30-3-1983- directions issued by the IAC under section 144B. 31-3-1983-- date of service of directions of the IAC on the ITO. 19-7-1983-- date of passing of the assessment order by the ITO. The ITO completed the assessment on a total income of Rs. 20,01,840 after making certain additions which it is not necessary to specifically deal with here. Against the said assessment, the assessee came up in appeal before the Commis .....

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..... was passed on19-7-1983, the learned Commissioner (Appeals) held that it was barred by limitation. 3. The department is aggrieved of the said decision and has come up in appeal before us. On the other hand, in the cross-objection, the assessee has supported the decision of the learned Commissioner (Appeals) and has contended that without prejudice to the same, the additions made by the ITO were arbitrary, unjust, illegal and at any rate very excessive. Shri S.K. Bansal, the learned departmental representative argued chat the assessment order was passed well within time. According to him, under Explanation 1(iv) to section 153, the ITO had time till 30-9-1983 to pass the assessment order whereas the assessment order was passed much before i .....

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..... assessment order must be passed. The effect of the Explanation is that the period that comes within it has to be added. Explanation 1 (iv) referred to above makes it clear that in a case where objections to the draft order are received by the ITO from the assessee, the ITO would have additional period (not exceeding 180 days) commencing from the date on which he forwards the draft order to the assessee and ending with the date on which the ITO receives the directions from the IAC within which to complete the assessment. The construction which was sought to be placed by the learned Commissioner (Appeals) namely that the extension of time to the extent of 180 days in cases covered under section 144B would not cover those cases where the IAC's .....

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