TMI Blog1987 (11) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... 1974-75, the Income-tax Officer in exercise of his power under section 144B of the Income-tax Act, 1961, proposed to make a variation in the income returned by the assessee for the previous year in regard to certain items. The draft order was forwarded to the assessee calling for his objections. In regard to four of the items on which variation was proposed to be made, the assessee's submissions were accepted and the amounts were computed accordingly. In regard to the other items, the assessee raised objections. The officer accordingly forwarded the draft order and the objections of the assessee to the Inspecting Assistant Commissioner. The Inspecting Assistant Commissioner, after considering the objections and after hearing the assessee's ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Explanation 1(iv) to section 153. During such extended period, it is open to the Inspecting Assistant Commissioner to exercise his power under section 144A and give such directions as he deems fit to the Income-tax Officer in regard to any matter connected with the assessment, even when such a matter does not figure in the draft order and the normal period prescribed by section 153(1) has expired. Counsel submits that by recourse to section 144A and in exercise of the suo motu power conferred by that section, it is open to the Inspecting Assistant Commissioner to give any direction which he deems necessary to the Income-tax Officer and the officer is bound to carry out such a direction. Counsel further submits that the recomputation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as a draft order under section 144B(1) is forwarded to the assessee by the Income-tax Officer. This is because Explanation 1 to section 153 provides for exclusion, in specified cases, of the specified length of time in the computation of the relevant period of limitation. When the time is so extended, there being only one assessment, all questions relating to that assessment are open to be dealt with during the extended period. Since the Inspecting Assistant Commissioner has power under section 144A to issue directions either suo motu or on a reference or on an application by an assessee, he may suo motu issue directions whenever he finds it necessary to do so in regard to any matter relating to the assessment. If directions are issued by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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