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Issues:
1. Assessment under section 143(1) of the Income-tax Act, 1961 and objection filed by the petitioner. 2. Time limit for completion of assessments under section 153(1)(a)(iii) of the Act. 3. Refund of advance tax paid by the petitioner. Analysis: 1. The petitioner filed his income tax return for the assessment year 1979-80, and the assessment was made under section 143(1) of the Income-tax Act, 1961, resulting in an additional demand. The petitioner objected to this assessment by filing an application under section 143(2)(a) of the Act within the prescribed period. However, as no assessment was framed under section 143(3) of the Act, the petitioner sought a refund of the advance tax paid and requested to restrain the respondents from recovering additional tax or penalty. The respondents contended that the objections raised by the petitioner were considered and rejected, hence no refund or relief was due. The court noted the provisions of section 143(2)(a) which allow an assessee to object to the assessment within a specified period. Since the assessment order was not passed within the stipulated time, the demand raised could not be enforced as per the proviso to section 143(2) of the Act. 2. Section 153(1)(a)(iii) of the Act sets a time limit for completing assessments, which in this case was two years from the end of the assessment year 1979-80. As the assessment order was not passed within this timeframe, the court held that there was no justification for enforcing the demand created under section 143(1) of the Act. The court emphasized that the communication of rejection of objections by the respondents did not constitute an assessment order and did not entitle them to enforce the demand against the petitioner. 3. Regarding the refund of advance tax paid by the petitioner, the court referred to a binding precedent where it was held that failure to frame a fresh assessment after the earlier assessment was set aside does not entitle the assessee to claim a refund of advance tax. The court cited a Supreme Court ruling to support this stance, emphasizing that the assessing authority must accept the return as furnished by the assessee and cannot demand further taxes if a fresh assessment is barred. Therefore, the court partly allowed the writ petitions, stating that the respondents could not enforce the demand raised under section 143(1) of the Act, but the petitioners were not entitled to a refund of the advance tax or self-assessed tax paid by them. In conclusion, the court's judgment addressed the issues of assessment under the Income-tax Act, the time limit for assessments, and the refund of advance tax, providing a detailed analysis of the legal provisions and precedents involved in the case.
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