TMI Blog2000 (11) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... erence by the assessee is concerning assessment years 1978-79 and 1979-80. The question of law referred are as follows : "At the instance of the Revenue, for the assessment years 1975-76 to 1977-78 : 1. Whether, on the facts and in the circumstances of the case, the Tribunal is right in law and fact in holding that the reassessment is barred by limitation ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal is right in law and fact in holding,--- (i) this is not a case where the Assessing Officer could have reason to believe that escapement of income was on account of the omission or failure of the assessee ? (ii) this is a case where the Assessing Officer comes to believe on the basis of the subsequent ju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al relied on the decision in Peter John v. CIT [1986] 157 ITR 711 [FB] a judgment of the Kerala High Court in which it was held that the entire interest should not be taxed for one year but the interest should be spread over various years. Accordingly, the Tribunal held that only the interest which accrued that year could be included and the balance should be spread over. The judgment of the Appellate Tribunal was on February 19, 1988. So far the year 1980-81 only a portion of the interest was included as income. Taking a clue from the judgment of the Appellate Tribunal, the Income-tax Officer issued notices for the escaped assessment for the years 1975-76, 1976-77, 1977-78, 1978-79 and 1979-80. The Assessing Officer relied on section 147(a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndency of such a case. According to learned counsel for the Revenue, the reassessment comes under section 147(a). Even, if the question comes under section 147(b), the relevant date to be taken is the date on which the assessment was passed in the year 1981-82. On the other hand, counsel for the assessee submitted that the date is the date on which the assessment or re-assessment could not have been made at the time the order which was the subject-matter of appeal, reference or revision, as the case may be, was made. The two questions to be decided in this case are---whether the reassessment was under section 147(a) or section 147(b) ? Counsel for the Department tried to argue that it comes under section 147(a). According to them, the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 150(1) of the Act. Section 150(1) says that, notwithstanding anything contained in section 149, the notice under section 148 may be issued at any time for the purpose of making an assessment or reassessment or recomputation in consequence of or to give effect to any finding or direction contained in an order passed by any authority in any proceeding under this Act by way of appeal, reference or revision. Thus, the limitation under section 149 does not apply to section 150(1). But, sub-section (2) of section 150 says that the provisions of sub-section (1) shall not apply in any case where any such assessment, reassessment or recomputation as is referred to in that sub-section relates to an assessment year in respect of which an assessment, r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1976-77 and 1977-78 are barred. So, the next two years are 1978-79 and 1979-80. The Department has found that so far as these two years are concerned, there is no bar of limitation if the date is taken from January 27, 1983. But, the assessee contends that if March 1, 1984, is taken, the reassessment for 1978-79 and 1979-80 would have been barred. So, the question to be considered is the meaning of the words, "at the time the order which was the subject-matter of the appeal, reference or revision". Learned counsel for the assessee would rely on the decision of the Andhra Pradesh High Court in CIT v. G. Viswanatham [1988] 172 ITR 401. Even though in that case, the court observed as follows : "The judgment of the Tribunal in the second ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er. According to us, the words "at the time the order which was the subject-matter of the appeal, reference or revision, as the case may be, was made," in section 150(2) are significant. It is because of the word "appeal" that, it is contended that the subject-matter should be construed as the original order. There are two tiers of appeals from the assessment order ; one to the Commissioner of Income-tax and another to the Tribunal. But, the next word is reference. Reference is made under section 256(l) of the Act. What is referred is the subject-matter of the order of the Tribunal. Can we say that when the Income-tax Tribunal refers the matter to the High Court, the order that was considered by the Tribunal is the order of the Assessing Of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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