TMI Blog1999 (7) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer on April 24, 1982, was barred by limitation and therefore, it had got to be annulled ? (2) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was correct in law in annulling the assessment and not setting aside the assessment made by the Income-tax Officer on April 24, 1982, and in not directing the Income-tax Officer to follow the procedure laid down in section 144B ? (3) Whether on the facts and in the circumstances of the case, the assessment order dated April 24, 1982, passed by the Income-tax Officer was not in violation of the principles of natural justice and consequently, required to be annulled instead of merely being set aside with a direction to make a fresh order ?" The undisputed f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g Assistant Commissioner who is required to hear the assessee and thereafter give directions to the Assessing Officer. The Revenue contended before the Tribunal that the assessee had not filed the objection and, therefore, it was incumbent on the part of the Assessing Officer to follow the procedure prescribed under section 144B(4) of the Act. The contention of the Revenue has been negatived by the Tribunal, which has held that the assessee had in fact filed an objection, inasmuch as it had specifically mentioned in its letter, that it was objecting to the addition proposed, and that the proposed addition was arbitrary. The fact that it wanted time to file a more detailed statement of objection was not regarded as amounting to the objection ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er to the Inspecting Assistant Commissioner in terms of section 144B(4) of the Act. What was breached was the assessee's statutory right to be heard by the Inspecting Assistant Commissioner in support of its objections. Section 144B which was on the statute from January 1, 1976, to April, 1, 1989, was in Chapter XIV of the Act which deals with procedure for assessment. That provision cannot be elevated to a provision conferring substantive right on the assessee to treat the entire assessment proceeding as a nullity. Breach of procedure is curable if the orders of the Income-tax Officer is capable of being set aside and the proceeding being continued from the stage at which the illegality had occurred. While counsel for the Revenue relie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... draft order to the assessee. The step is to be taken before the expiry of the period of two years from the end of the assessment year. It is for the assessee to either object to the proposal or accept the same. If the assessee objects, the objections as also the draft assessment order are to be sent to the Inspecting Assistant Commissioner who shall hear the assessee, and thereafter give such directions as he thinks fit to the Assessing Officer, to enable him to complete the assessment. The assessment is thereafter to be made in conformity with the directions so given. In this case, the procedural steps up to the stage of filing the objections had been completed. The assessee had sent a letter which was construed by the Income-tax Office ..... X X X X Extracts X X X X X X X X Extracts X X X X
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