TMI Blog2000 (6) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... ayable had been determined by the Income-tax Officer himself on a Form called I. T. N. S. 150 simultaneously along with the determination of taxable income, the Tribunal is right in law in holding that the assessment order is invalid ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in holding that the assessment order in this case was invalid and the tax on the income determined could not be recovered ?" The material facts of the case, giving rise to this reference, are as follows : the assessee, Alkeensons Agencies, Srinagar, was assessed by the Income-tax Officer, Srinagar, for the assessment year 1973-74 under section 143(3) of the Income-tax Act, 1961. In the said assessment, the Incometa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plicable and the impugned assessment was invalid. The Tribunal deleted the additions made by the Income-tax Officer on that count, Aggrieved by the above decision, the Revenue sought reference of the questions of law arising out of the order of the Tribunal to this court under section 256(1) of the Act. Hence, this reference. We have heard Mr. Anil Bhan, learned counsel for the Revenue, who submits that the controversy in this case now stands concluded in favour of the Revenue by the decision of the Supreme Court in Kalyankumar Ray v. CIT [1991] 191 ITR 634. The decision of this court in S. Mubarik Shah Naqshbandi v. CIT [1977] 110 ITR 217, according to learned counsel, has no application to the facts of the present case where tax payable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ates, reliefs and adjustments available to the assessee, the calculation of the net tax payable is a process which is mostly arithmetical but generally time-consuming. If, therefore, the Income-tax Officer first draws up an order assessing the total income and indicating the adjustments to be made, directs the office to compute the tax payable on that basis and then approves of it, either immediately or some time later, no fault can be found with the process, though it is only when both the computation sheets are signed or initialled by the Income-tax Officer that the process described in section 143(3) will be complete." The Supreme Court also took note of the practice of calculating the tax payable in Form I.T.N.S. 150 and observed : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -tax Officer, determining the tax payable, within the meaning of section 143(3). It may be, as stated in CIT v. Himalaya Drug Co. [1982] 135 ITR 368 (All), only a tax calculation form for departmental purposes as it also contains columns and code numbers to facilitate computerisation of the particulars contained therein for statistical purposes but this does not detract from its being considered as an order in writing determining the sum payable by the assessee. We are unable to see why this document, which is also in writing and which has received the imprimatur of the Income-tax Officer, should not be treated as part of the assessment order in the wider sense in which the expression has to be understood in the context of section 143(3). T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lated in Form I. T. N. S. 150 which is duly signed by the Income-tax Officer along with the assessment order. The statutory requirement of calculating the tax payable has thus been complied with. There is, therefore, no illegality in the assessment order on that count. The decision of this court in S. Mubarik Shah Naqshbandi v. CIT [1977] 110 ITR 217, has no application to the facts of the present case. In that case, the assessment order did not determine the tax payable and there was no other paper or form containing the computation except the notice of demand. No tax calculation had been made in Form I. T. N. S. 150 or on any other sheet of paper signed or initialled by the Income-tax Officer. It was in such factual situation that in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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