TMI Blog1997 (9) TMI 612X X X X Extracts X X X X X X X X Extracts X X X X ..... see. The assessee then moved application under section 154 of the Income-tax Act contending that the claim of set off of loss on debentures was in order in view of decision of Hon ble Supreme Court in the case of Miss Dhunbai Kapadia v. CIT [1967] 63 ITR 651. It was further contended that adjustment made by the Assessing Officer in summary assessment under section 143(1)(a) was arbitrary and without jurisdiction. The Assessing Officer rejected this claim of the assessee under section 154 of the Income-tax Act. The assessee then approached learned CIT(Appeals) for the necessary relief. The CIT(Appeals) considered in detail the claim of the assessee and held the view that question of examination of the matter in the light of decision of Miss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned CIT(Appeals) did not hold that above decision was not applicable to the facts of the case. It was accordingly contended that adjustment of loss disallowed by the learned CIT(Appeals) was bad in law. 4. The learned Departmental Representative supported impugned order of CIT (Appeals) he argued that appellate authority had ample power to direct the Assessing Officer to complete assessment under section 143(3) or under section 147/148 of the Income-tax Act. Thus, there was nothing wrong with the direction issued by CIT(Appeals). 5. We have given careful thought to rival submissions of the parties. It is not in dispute that Assessing Officer could not disallow set off of loss as claimed by the assessee in the prima facie adjustment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions. When we referred to proviso to section 143(2) as it existed prior to its amendment with effect from 1-10-1991, we find that no notice under the abovementioned sub-section could be served on the assessee after the expiry of the financial year in which the return was furnished or expiry of 6 months from the end of the month in which the return was furnished whichever was later. So, time-limit for issuing a notice under section 143(2) and for making an assessment under section 143(3) stood expired before directions were issued by learned CIT(Appeals). The aforesaid time-limit could not be revived or extended. 5.1 It is, therefore, clear that directions issued by the learned CIT(Appeals) to make assessment under section 143(3) o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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