TMI Blog1993 (8) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... s worked out ? " For the assessment year 1973-74, the Income-tax Officer passed an order on March 30, 1976, whereby he assessed the total income of the assessee. On April 28, 1976, he issued a demand notice calling upon the assessee to pay Rs. 11,739 as tax determined on the basis of the assessed total income. The assessee challenged the assessment of total income and the notice of demand by preferring an appeal to the Appellate Assistant Commissioner. The validity of the assessment and the issuance of the notice was challenged on the ground that as the Income-tax Officer had failed to determine the sum payable by him as tax along with the assessment of the total income, the whole assessment had become time-barred. According to the Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der (headnote) : " 'Assessment' is one integrated process involving not only the assessment of the total income but also the determination of the tax. The latter is as crucial as the former. The Income-tax Officer has to determine, by an order in writing, not only the total income but also the net sum which will be payable by the assessee for the assessment year in question and the demand notice has to be issued under section 156 of the Income-tax Act, 1961, in consequence of such an order. The statute does not, however, require that both the computations (i.e., of the total income as well as of the sum payable) should be done on the same sheet of paper, the sheet that is superscribed 'assessment order'. It does not prescribe any form for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed and the tax payable by him is determined. When an order in writing in respect of both these things is passed, it can be said that there is a complete order of assessment. These two steps may be taken simultaneously or separately, but it cannot be gainsaid that both of them will have to be taken within the time prescribed by the Act. Admittedly, in this case the second step was not taken within the prescribed time. After determining the total income, the Income-tax Officer possibly left the matter to his subordinates for the purpose of calculating the tax payable by the assessee on the basis of the assessed total income. Even if we assume in favour of the Assessing Officer that he approved the said calculation when the papers were put be ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
