TMI Blog1991 (1) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... fore the Income-tax Officer ? " In the course of a proceeding under section 144B of the Incometax Act, 1961, while considering objections of the assessee under section 144B(4), the Inspecting Assistant Commissioner also issued certain directions purporting to be under section 144A. However, before issuing such a direction under section 144A, the assessee was heard in respect of the said matter also as provided under the proviso to section 144A(1). According to the assessee, such a direction cannot be issued under section 144A because no proceeding was then pending before the assessing authority ; the power under section 144A can be invoked by the Inspecting Assistant Commissioner either on his own motion or on a reference being made to hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment order. In these circumstances, the assessee's contention was accepted by the Tribunal. In the aforesaid Delhi High Court decision, the High Court had no occasion to consider the invocation of section 144A at the time of making an order under section 144B. The simple question was whether the assessee could be confronted with more than one proposed draft order of assessment, each time raising the amount of assessment. The learned single judge of the Delhi High Court noted that while, under section 144A, the Inspecting Assistant Commissioner can also act suo motu, under section 144B, the jurisdiction depends upon which the reference made to him by the Income-tax Officer. However, the learned judge observed that the object of these sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssued by the Inspecting Assistant Commissioner were not preceded by any hearing, in that regard, of the assessee. The relevant portion of the decision is based on the interpretation of section 144B(4) only. The Kerala High Court had occasion to consider almost a similar situation in CIT v. N. Krishnan [1988] 172 ITR 604 ; in respect of certain disputed items, the Income-tax Officer referred the matter to the Inspecting Assistant Commissioner under section 144B. The Inspecting Assistant Commissioner considered the objections of the assessee. The Inspecting Assistant Commissioner also recomputed the amounts regarding four items in respect of which there was no reference. However, this action was upheld by the Bench by applying section 144A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -tax Officer and he fails to make a reference under section 144B and thereafter it is to be held that section 144A is not applicable, the Revenue may have thereafter to resort to the power of revising an order of assessment and it is not understandable as to why only such procedure should be permitted. By permitting the invocation of section 144A at the time of exercising the power under section 144B, no prejudice will result to the assessee. The next contention pertains to the question whether the assessment should be pending before the Income-tax Officer. The substance of section 144A is that the records of the proceedings should be available to the Inspecting Assistant Commissioner. There can be no doubt that an assessment is not compl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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