TMI Blog2004 (12) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... mit within which he has to complete the assessment of this nature - The fact remains that due to his inaction (whether deliberate or otherwise), the Revenue has been put to loss to a large extent. It is now for the Department to decide departmentally as to whether any action is called for and if so, what kind of action is permissible under the Service Rules for such lapses and/or inaction against such officer. We leave this matter at this stage for the Department to decide. - - - - - Dated:- 2-12-2004 - Judge(s) : A. M. SAPRE., ASHOK KUMAR TIWARI. JUDGMENT The judgment of the court was delivered by A.M. Sapre J.- The decision rendered in this appeal shall govern disposal of other connected appeals being I.T.A. Nos. 48, 49 and 57 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n by the Assessing Officer to the auditor directing him to complete the audit in due time did not extend the time for completion of audit within the meaning of section 142(2) of the Income-tax Act, 1961?" The facts in brief that led to disposal of this case out of which this appeal arises need mention infra. The appellants of these appeals constitute what we call "group of business". Their premises were raided by the income-tax sleuths by taking recourse to proceedings under section 132 of the Act between May 14, 1994 and May 17, 1994. Since none of the assessees had filed returns till the date of search and hence, notice under section 148 of the Act was issued on September 8, 1994 for the assessment years 1991-92 to 1994-95. Returns we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal by passing the impugned order. In the opinion of the Tribunal, the assessment order made on November 7, 1997 was barred by limitation and hence, it was annulled. It is against this order of the Tribunal, the Revenue, i.e., the Commissioner of Income-tax, has come up in this appeal. As observed supra, this appeal was admitted for final hearing on the questions of law framed supra. Heard Shri R.L. Jain, learned senior counsel with Ku. V. Mandlik, learned counsel for the Revenue. None for the assessee. Having heard learned counsel for the parties and having perused the record of the case, we find no merit in these appeals. In other words, we too are of the opinion that the view taken by the Tribunal appears to be correct though we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 1.(iii)- the period commencing from the date on which the Assessing Officer directs the assessee to get his accounts audited under sub-section (2A) of section 142 and ending with the date on which the assessee furnishes a report of such audit under that sub-section, or... Provided that where immediately after the exclusion of the aforesaid time or period, the period of limitation referred to in sub-sections (1), (2) and (2A) available to the Assessing Officer for making an order of assessment, reassessment or recomputation, as the case may be, is less than sixty days, such remaining period shall be extended to sixty days and the aforesaid period of limitation shall be deemed to be extended accordingly." Section 142(2A) empowers the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eferred supra, then we find that the assessment should have been completed in the first place up to March 31, 1997, in terms of section 153(2) ibid. It is for the reason that the notice under section 148 was issued to the assessee on September 8, 1994. In this view, the last date of the financial year as provided under section 153(2) would be March 31, 1995, and as a consequence, the last date for completing the assessment would be two years, i.e., on or up to March 31, 1997. Since, in this case, the Assessing Officer invoked the provisions of section 142(2A) against the assessee and hence the provisions of section 153, Explanation 1(iii) read with its proviso will get attracted. As observed supra, on March 11, 1997, the Assessing Officer a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot be held to be within the limitation as per the scheme of three sections referred supra. It is, therefore, rightly held by the Tribunal to be barred by limitation. In view of what we have held supra and if our interpretation and/or finding is eventually accepted by the Revenue or upheld by the Supreme Court in an appeal if filed by the Revenue, we are constrained to observe that the Assessing Officer in passing the assessment order did not discharge his duties to the best of his knowledge, acumen and dedication thereby putting the Revenue to a huge tax loss. He being a very senior Assessing Officer should have known the law of limitation which governs the case in question. There is valid reason that a senior officer of the status of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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