TMI Blog2000 (12) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany incorporated under the Indian Companies Act, 1913, and is now a Government company as it has been taken over by the Central Government. The petitioner submitted four returns for the chargeable accounting periods, namely, for periods ending December 31, 1946, December 31, 1947, December 31, 1948 and March 31, 1949. In respect of these periods, provisional assessments were made under section 13 of the Act on various dates from December 27, 1948 to January 22, 1951, and the tax determined under the provisional assessments was paid. The regular assessment was made on December 31, 1969. However, the regular assessment was quashed by the Tribunal by its order dated March 24, 1973, annexure 1 to the supplementary affidavit. Against this or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ber held in favour of the assessee while the Accountant Member held in favour of the Department. The matter went to a Third Member who was also an Accountant Member who held in favour of the Department. Against that order, this writ petition has been filed. We are of the opinion that the judgments of the Tribunal and the Inspecting Assistant Commissioner are not correct and deserve to be set aside. In our opinion, the provisional assessment will merge into the regular assessment as is evident from section 13(5) to (7) of the Business Profits Tax Act, 1947. Section 13(5) to (7) states as follows: "(5) There shall be no right of appeal against a provisional assessment made under this section, and it shall, until a regular assessment is ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... preme Court in Jaipur Udyog Ltd. v. CIT [1969] 71 ITR 799, where the Supreme Court held that tax pursuant to provisional assessment is liable to be adjusted in the light of the regular assessment. This decision was relied upon by the Madhya Pradesh High Court in Smt. Shantibai v. CIT [1984] 148 ITR 49, where it was observed that the provisional assessment did not bind either the assessee or the Revenue and the appeal is provided only against the regular assessment. In our view the contention of learned counsel for the petitioner is correct and the provisional assessment will stand only till such time as the regular assessment is made or could validly have been made. If this view is not accepted it will lead to strange consequences. For in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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