TMI Blog1997 (4) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... peals relates to the interpretation of the expression " assessment proceeding " in Explanation 1 in section 153 of the Income-tax Act, 1961 (hereinafter referred to as " the Act "). Civil Appeals Nos. 2739-41 of 1981 have been filed by Auto and Metal Engineers, a partnership firm, and its partners while Civil Appeals Nos. 2742-44 of 1981 and Civil Appeals Nos. 2745-47 of 1981 have been filed by Sunanda Rani Jain and Karuna Rani Jain, the two partners of the assessee-firm in their individual capacity. The appeals relate to assessment years 1967-68, 1968-69 and 1969-70. On April 24, 1971, a search was conducted at the business premises of the assessee-firm as well as at the residential premises of the partners and certain documents and pape ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Punjab and Haryana. In the said writ petitions the case of the appellants was that under the interim order dated November 23, 1971, passed by the Delhi High Court there was no stay of the assessment proceedings and that Explanation 1 to section 153 of the Act could not be invoked and that after the expiry of the period prescribed under section 153, the Income-tax Officer was not competent to issue the notice in the assessment proceedings against the appellants. The said contention of the appellants was rejected by the learned single judge on the view that the expression " assessment proceeding " in Explanation 1 in section 153 would include the passing of the order of assessment and since the passing of the order of assessment had been sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt proceedings during the pendency of the writ petitions and that since he failed to do so he could not take any step in the assessment proceedings by issuing notice under sections 142 and 143 of the Act after March 31, 1972. In our opinion, there is no merit in the said contention urged by learned counsel. The relevant provisions of section 153 of the Act as it stood at that time may be reproduced as under : " 153. (1) No order of assessment shall be made under section 143 or section 144 at any time after--- (a) the expiry of--- (i) four years from the end of the assessment year in which the income was first assessable, where such assessment year is an assessment year commencing on or before the 1st day of April, 1967 ; (ii) thre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion was in operation should be excluded for the purpose of computing the period of limitation for making the assessment order. In the Act the provisions regarding procedure for assessment are contained in Chapter XIV (sections 139 to 158). Under the said provisions the process of assessment involves (i) filing of the return of income under section 139 or under section 142 in response to a notice issued under section 142(1) ; (ii) inquiry by the Assessing Officer in accordance with the provisions of sections 142 and 143 ; (iii) making of the order of assessment by the Assessing Officer under section 143(3) or section 144 ; and (iv) issuing of the notice of demand under section 1.56 on the basis of the order of assessment. The process of as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... planation 1 to section 153. The High Court, in our opinion, was right in holding that the period during which the said stay order passed by the Delhi High Court was in operation has to be excluded for the purpose of computing the period of limitation for making the order of assessment and the appeals are liable to be dismissed. Keeping in view the fact that after the judgment of the learned single judge dismissing the writ petitions the appellants had obtained a stay order from the High Court in the letters patent appeals that were filed by them and after the dismissal of the said appeals a stay order was obtained from this court which order has been in operation during the pendency of these appeals, we grant four months' time to the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
