TMI Blog1983 (9) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... d under the provisions of the I.T. Act, 1961, as an individual. His income for the assessment year 1963-64 was the subject-matter of assessment before the ITO, who passed his assessment order on March 16, 1968. That order was then followed by a notice dated March 20, 1968, which was issued by the office of the ITO on March 30, 1968, and was served on the assessee on April 13, 1968. The assessee filed an appeal against that assessment order contending, inter alia, that it was barred by time under s. 153 of the said Act. The AAC repelled this contention holding that the assessment order was passed before March 31, 1968. The assessee then preferred an appeal before the Income-tax Appellate Tribunal reiterating his contention that the assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... years from the end of the assessment year in which the income was first assessable, where such assessment year is an assessment year commencing on or before the I St day of April, 1967. In other words, the ITO must complete the assessment within four years and, if he fails to do so, he would not be entitled to pass any order with respect to that particular assessment year. The order of assessment is, hence, required to be passed before the expiry of the period of four years. The contention of the assessee before the AAC as also the Tribunal was that he received a demand notice dated March 20, 1968, on April 13, 1968, and as the said demand notice was accompanied by an undated assessment order, it could not be held that the assessment was c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eriod prescribed in the Act. It does not require that the demand notice should also be issued within that period. The words " order of assessment " cannot be construed as to include a demand notice as well. The demand notice does not form part of the order of assessment as is evident from the provisions of s. 156 of the Act which says that when any tax, interest, penalty, fine or any other sum is payable in consequence of any order passed under this Act, the ITO shall serve upon the assessee a notice of demand in the prescribed form specifying the sum so payable. The demand notice is prepared after the assessment order is passed and tax or interest or penalty, etc., is found payable by the assessee in consequence of that order. The stage ..... X X X X Extracts X X X X X X X X Extracts X X X X
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