TMI Blog1977 (4) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... nexed from the Income-tax Officer mentioned in column 4 to the Income-tax Officer mentioned in column 5 thereof. ---------------------------------------------------------------------------------------------------------------------------------------------- Name of the From Income-tax To Income-tax Sl. No. G.I.R. No. assessee Officer Officer ----------------------------------------------------------------------------------------------------------------------------------------------- 1 2 3 4 5 ----------------------------------------------------------------------------------------------------------------------------------------------- 1 C-3 Cachar Plywood I.T.O., A-Wd., I.T.O. CC Ltd., Karimganj XXXIII, Cal. Oliviacherra, Cachar. This order shall take effect from 8-1-73. Sd. B. Madhavan, Under-Secretary, Central Board of Direct Taxes. " Thereafter, in pursuance thereof, the Income-tax Officer, Central Circle XXXIII, Calcutta, issued a notice to the appellant on February 20, 1973, calling upon it to produce certain documents in connection with the assessment year 1970-71 under section 143(2) of the Act. The appellant challenged the aforesaid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 144 at any time after- (a) the expiry of -- (i) four 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 1st day of April, 1967 ; (ii) three years from the end of the assessment year in which the income was first assessable, where such assessment year is the assessment year commencing on the 1st day of April, 1968 ; (iii) two 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 after the 1st day of April, 1969 ; or (b) the expiry of eight years from the end of the assessment year in which the income was first assessable, in a case falling within clause (c) of sub-section (1) of section 271 ; or (c) the expiry of one year from the date of the filing of a return or a revised return under sub-section (4) or sub-section (5) of section 139, whichever is latest. (2) No order of assessment, reassessment or recomputation shall be made under section 147-- (a) where the assessment, reassessment or recomputation is to be made under clause (a) of that section, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an order by the court on a reference or in an order of any court in any other proceeding otherwise than by way of appeal or reference under the Act. A writ proceeding as here in respect of any order under the Act under section, 127 of the Act will be such proceeding being one otherwise than by way of appeal or reference under the Act. Prima facie, therefore, the court has the jurisdiction in the instant case to pass appropriate directions for assessments in respect of the years which otherwise would be barred by limitation if such action is called for in the interest of justice and in the attending circumstances. Learned Advocate-General referred to the decision in Director of Inspection of Income-tax (Investigation) v. Pooran Mall Sons [1974] 96 ITR 390, 395 (SC), in support of his proposition that the instant case is a fit case where the court, in disposing of the appeal, should pass such appropriate directions in connection with the said assessments for years indicated above by the Income-tax Officer having the jurisdiction to assess, particularly in view of the authority and power conferred on court in such " other " proceeding. The Supreme Court observed, while considering ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion (1) of section 153 of the Act, the authority has lost its jurisdiction to pass any order of assessment in respect of the relevant years. Further, sub-section (3) of section 153 is a proviso to sub-sections (1) and (2) of the same section and its provisions cannot enlarge or curtail the substantive provisions for limitation of time for assessment. It was also submitted that there was no injunction at the material time on the Income-tax Officer, Karimganj, from making assessment within the period of limitation and for such inaction on the part of such officer, the court should not exercise its discretion to the serious prejudice of the appellant-assessee. Dealing with the question of injunction, it is true there was no fetter on the Income-tax Officer, " A " Ward, Karimganj, to proceed with the assessments for the relevant years. But so long as the impugned order of the Central Board of Direct Taxes dated December 23, 1972, transferring the case of the appellant from the file of the said officer to the Income-tax Officer, Central Circle XXXIII, Calcutta, is ill existence, as it does exist even today till it is quashed, the Income-tax Officer of Karimganj had no jurisdiction to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eriod of limitation in absence of requisite provision in that regard. We have already seen that sub-section (3) of section 153 of the Income-tax Act, 1961, is a substantive provision of law. It provides, inter alia, in respect of a proceeding before any court, otherwise than by way of appeal or reference under the Act that provision of sub-sections (1) and (2) shall not apply to certain classes of assessments, reassessments and recomputations which may be completed at any time. One of such classes of assessment is where it is made on the assessee or any person in consequence of or to give effect to any finding or direction contained in an order of any court in such proceeding. When the court is in seisin of such proceeding, the time-limit of assessment as provided in sub-sections (1) and (2) of section 153 shall have no application to the assessment which may be made at any time in consequence of or to give effect to any finding or direction contained in an order of court in the said proceeding. Accordingly, it can be said that when such proceeding is pending before a court there can be no limitation on the revenue to make assessment in consequence of any finding or to give effect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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