9911796707
TMI Blog1997 (4) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... cer to make a fresh assessment after examining the accounts in detail and also the discrepancy in valuation of stock shown by the assessee to have been pledged with the bank. This is a classic example of the callousness and the lethargic attitude of the respondent. The facts are that the assessment came to be completed for the year 1949-50 on the petitioner on March 23, 1954. The petitioner, aggrieved by the said assessment order, went up in appeal. The Appellate Assistant Commissioner of Income-tax by his order dated December 30, 1957, set aside the assessment order directing the Assessing Officer to redo the assessment in the light of directions as contained in the appellate order. The petitioner thereafter was called upon to appear befo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore, clear from sub-section (2A) of section 153 of the Income-tax Act that after setting aside or cancellation, an order of assessment may be made at any time before the expiry of two years from the end of the financial year in which the order under section 146 cancelling the assessment is passed by the Assessing Officer. Prior to the insertion of sub-section (2A) in section 153 in the year 1970, there was a Circular No. 10 P(V-68) of 1968, dated 15th October, 1968, to the effect that if any assessment has been set aside in appeal that should normally be completed within two years. The period of limitation as suggested in the said circular was later accepted by the Central legislation and this is how sub-section (2A) came to be insert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upport our view-point but if at all one is needed we may refer to the decision of this court, reported in the case, ITO v. Bisheshwar Lal [1970] 76 ITR 653. In this case a notice had been issued under the old Act for which no period of limitation was prescribed under the old Act. In the said case the notice had been issued after a lapse of about 12 years under section 146 (sic) of the Income-tax Act. The court held that it would, therefore, amount to an abuse of power and the proceedings can be quashed by this court. From the facts and circumstances of the case, it is clear that the notices had been issued after about 7 years under section 153 of the Income-tax Act in the instant case. Obviously, under this provision the limitation had exp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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