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TMI Blog1996 (9) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment order to the assessee as required by the said provision to which the assessee submitted its objections. Thereupon, the Income-tax Officer referred the matter to the Inspecting Assistant Commissioner, again as required by Section 144B of the Act. While the matter was pending before the Inspecting Assistant Commissioner, the assessee came forward with the third revised return. The Income-tax Officer rejected the third revised return by his letter dated the March 5, 1980. In this letter, he stated that inasmuch as he had already made a draft assessment order and communicated the same to the assessee and has, after receiving the assessee's objections, referred the matter to the Inspecting Assistant Commissioner he can no longer e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ub-section (1) or Sub-section (2), discovers any omission or any wrong statement therein, he may furnish a revised return at any time before the assessment is made. 7. The question is whether this right can be exercised even after the Income-tax Officer makes a draft order and after receiving the objections of the assessee, refers the matter to the Inspecting Assistant commissioner for directions. 8. Section 144B reads as follows: 144B. (1) Notwithstanding anything contained in this Act, where in an assessment to be made under Sub-section (3) of Section 143, the Income-tax Officer proposes to make any variation in the income or loss returned which is prejudicial to the assessee and the amount of such variation exceeds the amount fixed b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) Every direction issued by the Inspecting Assistant Commissioner under Sub-section (4) shall be binding on the Income-tax Officer. (6) For the purpose of Sub-section (1), the Board may, having regard to the proper and efficient management of the work of assessment, by order, fix, from time to time, such amount as it deems fit: Provided that different amounts may be fixed for different areas: Provided further that the amount fixed under this sub-section shall, in no case, be less than twenty-five thousand rupees. (7) Nothing in this section shall apply to a case where an Inspecting Assistant Commissioner exercises the powers or performs the functions of an Income-tax Officer in pursuance of an order made under Section 125 or Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng Sub-section (5) nugatory. All that it means is that the said right has to be exercised before the making of draft assessment order in cases where Section 144B was applicable. 11. Learned Counsel for the appellant brought to our notice another judgment of the Gujarat High Court in Shri Vallabh Glass Works Ltd. v. ITO [1995] 212 ITR 433(Guj), S.C.A. No. 2728 of 1981, in support of his contention. There, it appears, after the draft assessment order was made and the matter referred to the Inspecting Assistant Commissioner, a revised return was filed by the assessee. The Inspecting Assistant Commissioner rejected it and passed final orders. On a writ petition being filed, the High Court held that the Inspecting Assistant Commissioner was bou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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