1998 (2) TMI 62 - HC - Income Tax

Summary

Issues Involved:
1. Jurisdiction of the Income-tax Officer to proceed with the assessment.
2. Limitation period for completing the assessment.
3. Validity of the Tribunal's order and its corrigendum.
4. Petitioner's entitlement to exemption u/s 11 of the Income-tax Act.

Summary:

1. Jurisdiction of the Income-tax Officer to proceed with the assessment:
The petitioner sought a writ of prohibition to prevent the Assistant Commissioner of Income-tax from proceeding with the assessment for the year 1974-75. The petitioner argued that the Income-tax Officer had no jurisdiction to proceed further as the assessment was beyond the period of limitation. However, the Tribunal's order allowed the Income-tax Officer to consider the issue of limitation and jurisdiction, thus validating the officer's authority to proceed.

2. Limitation period for completing the assessment:
The petitioner contended that the assessment for the year 1974-75 was barred by limitation. The Tribunal permitted the petitioner to raise the issue of limitation before the Income-tax Officer. The Tribunal's corrigendum clarified that the cross-objection was allowed for statistical purposes, but it did not address the merits of the limitation issue. The court held that the Tribunal's order effectively allowed the Income-tax Officer to consider the limitation issue, and there was no lack of jurisdiction.

3. Validity of the Tribunal's order and its corrigendum:
The Tribunal's original order dismissed both the appeal and the cross-objection but later issued a corrigendum stating that the cross-objection was allowed for statistical purposes. The court noted that the Tribunal did not delve into the merits of the limitation issue and left it open for the Income-tax Officer to decide. The court emphasized that judgments should not be interpreted like statutes and that the Tribunal's order allowed the parties to agitate the limitation issue before the Income-tax Officer.

4. Petitioner's entitlement to exemption u/s 11 of the Income-tax Act:
The Commissioner of Income-tax (Appeals) had directed the Income-tax Officer to verify the petitioner's claim for exemption u/s 11 and recompute the income after providing a reasonable opportunity for the petitioner to furnish necessary details. The Tribunal upheld this order and directed the Income-tax Officer to consider the exemption claim in accordance with the law applicable to the assessment year 1974-75.

Conclusion:
The court dismissed the writ petition, holding that the Income-tax Officer had jurisdiction to consider the issue of limitation and proceed with the assessment. The petitioner's contentions were not accepted, and the connected W.M.P. was also dismissed.