TMI Blog1989 (11) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... as right in holding that the calculation of tax payable by the assessee having been done as per ITNS-150 forms in March, 1982, the rectification under section 154 of the Income-tax Act, 1961, was barred by limitation ?" The assessment orders for both the years 1976-77 and 1977-78 were passed under section 143(1) of the Act on October 29, 1977. Later on, certain mistakes in the assessment orders were detected by the Income-tax Officer and, therefore, notices were issued to the assessee for rectification of the mistakes. The assessee filed her reply on October 24, 1981, and was also heard on the very day. The Income-tax Officer purported to have passed his order under section 154 of the Act on the said date. The rectification resulted in en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stant Commissioner of Income-tax. It was argued on behalf of the Revenue that the calculations of tax in ITNS-150 forms, prepared in pursuance of the orders passed under section 154 of the Act by the Income-tax Officer, were made on October 24, 1981 itself which was evident from the date mentioned on the calculation forms and, therefore, the entire exercise of passing an order under section 154 of the Act and the determination of tax liability was completed within the period of limitation. It was admitted by the departmental representative before the Tribunal that the calculation of tax and/or of refund was an integral part of the assessment proceedings which included rectification and that the said calculation also had to be made within th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der of assessment with a view to rectify any mistake apparent from the record. Section 154(4) says that where an amendment is made under section 154, an order shall be passed in writing by the income-tax authority concerned. Section 154(6) casts a duty on the Income-tax Officer to serve on the assessee a notice of demand under section 156 where the amendment has the effect of enhancing the assessment or reducing a refund already made. Lastly, section 154(7) lays down the limitation by providing that no amendment under this section shall be made after the expiry of four years from the date of the order sought to be amended. A bare reading of these provisions would show that where the income-tax authority amends any assessment order which has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... larly, in S. Mubarik Shah Naqshbandi's case [1977] 110 ITR 217, it was held by the Jammu and Kashmir High Court that section 144 provided that the Income-tax Officer would make the assessment of the total income or loss to the best of his judgment and determine the sum payable by the assessee or refundable to the assessee on the basis of such assessment. On a reading of the section, the determination of the tax payable by the assessee is as much mandatory as the determination of his income. The decision of this court in Jijeebai Shinde v. CGT [1986] 157 ITR 122 was in reference under section 26 of the Gift-tax Act, 1958, where the following question of law was referred to this court for its decision (at page 123) : "Whether, on the facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on record in the present case would show that the reply to the show-cause notice was filed and the arguments of the assessee were heard on the very date, i.e., October 24, 1981, when the order under section 154(1) of the Act was said to have been passed by the Income-tax Officer. The calculations of tax were also shown to have been made on October 24, 1981, in the ITNS-150 forms whereas the notices of demand were served on the assessee on March 27, 1982. Had the assessment order been passed and calculations of tax made on October 24, 1981, the notices of demand would also have been served on the assessee on October 24, 1981, itself. As a matter of fact, the Tribunal and the Appellate Assistant Commissioner have both held that though the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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