TMI Blog1989 (1) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... n the assessee on November 3, 1969. The assessee filed a return on November 23, 1969, disclosing loss as originally claimed While considering the return filed by the assessee, the Income-tax Officer proposed to make an addition of Rs. 4,44,635 and in accordance with section 144B of the Act, which came into force with effect from January 1, 1976, he prepared a draft of the proposed order of assessment and forwarded it to the assessee on March 24, 1976. The Income-tax Officer was also of the view that the assessee had concealed particulars of its income attracting section 271(1)(c) of the Act and that, therefore, section 153(l)(b) of the Act would govern the limitation for the completion of the assessment. However, the assessee raised the obj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al was right in holding that section 153(2) applied and not section 153(1) and consequently cancelling the reassessment made by the Income-tax Officer on September 10, 1976, for the assessment year 1967-68, as time-barred ?" Whether the revised assessment has been made within the time prescribed therefor is the question in this reference. That, in turn, would depend upon whether the case is governed by the provisions of section 153(1)(b) or section 153(2)(a) of the Act. While the contention of the Revenue is that the case is governed by the provisions of section 153(1)(b) of the Act, the assessee's case is that it would fall under section 153(2)(a) of the Act. Section 153 of the Act provides for time limits for completion of assessments a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment, reassessment or recomputation is to be made under clause (b) of that section, after (i) the expiry of four years from the end of the assessment year in which the income was first assessable, or (ii) the expiry of one year from the date of service of the notice under section 148, whichever is later." There is no dispute that if section 153(1)(b) of the Act should govern the case, then, the time for making the assessment should expire on March 31, 1976, being a period of eight years from the end of the assessment year 1967-68, in which the income was first assessable in a case falling within section 271 ( 1 ) (c) of the Act. Sections 139 to 158 deal with the procedure for assessment commencing with section 139 relating ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee to produce evidence and on a consideration of the evidence, the assessment order can be made. Cases may arise when an assessee does not file return despite a notice under section 139(2) of the Act and also having filed a return, the assessee does not extend his co-operation by providing the information required of him despite a notice under section 143(1) or 143(2) of the Act. In such a situation, under section 144 of the Act, the Income-tax Officer can proceed to make a best judgment assessment. It is thus seen that sections 143 and 144 of the Act provide for the procedure for making assessments in the situations contemplated therein. In some cases, it may also be that an assessee had not filed a return under section 139(1) of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th reference to assessments under sections 143 or 144 of the Act and assessments or reassessments or recomputations made under section 147(a) or 147(b) of the Act and the provision of different periods of limitation under sections 153(1) and 153(2) is clearly indicative that a clear and distinct dichotomy was intended and maintained even with reference to the period of limitation within which action could be taken. In other words; it could not have been intended that there should be any mixing up or overlapping of the different cases contemplated under section 153(1) or 153(2) of the Act, as the case may be. Though under section 2(8) of the Act "assessment" includes reassessment, that definition would apply unless the context otherwise requ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... return having been submitted by the assessee, the Income-tax Officer, on information received, issued a notice under section 148 of the Act for the assessment year 1962-63, which was returned as refused and a fresh notice and later notice under section 142 of the Act were also returned as refused and thereupon the Income-tax Officer proceeded to make a best judgment assessment on August 14, 1968, but it was purported to be done under section 144 of the Act. A writ petition was filed challenging the assessment and it was contended that under section 153(1) of the Act, an assessment should have been made before the expiry of four years from the end of the assessment year 1962-63 and, therefore, the assessment made on August 14, 1968, was tim ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
