TMI Blog1996 (9) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... ee [1994] 210 ITR 723), dismissing its writ petition. For the assessment year 1977-78, the assessee filed its returns. It appears that thereafter it filed a revised return and then a second revised return. After making the appropriate inquiry, the Income-tax Officer made a draft assessment order in view of the then existing provisions in section 144B of the Income-tax Act. He sent a copy of the draft 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on (4) of section 139. A further right is given to the assessee, who has filed a return under sub-section (1) or (2) of section 139, to file a revised return, at any time before making the assessment, if he discovers any omission or mistake in the return filed. Sub-section (5) of section 139, as it stood at the relevant time, read : "if any person having furnished a return under sub-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." 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 Inspectin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y) the records relating to the draft order, issue, in respect of the matters covered by the objections, such directions as he thinks fit for the guidance of the Income-tax Officer to enable him to complete the assessment : Provided that no directions which are prejudicial to the assessee shall be issued under this sub-section before an opportunity is given to the assessee to be heard. (5) 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 differe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to be construed and understood in a reasonable manner. Once the Income-tax Officer has done all that he has to do under the Act and, makes a draft order and then refers to the Inspecting Assistant Commissioner as required by section 144B, permitting the assessee to file a revised return would involve duplication of work and multiplicity of proceedings. By saying so, we are not rendering 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. 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, S.C.A. No. 2728 of 198 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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