1997 (3) TMI 39 - HC - Income Tax

Summary

Issues involved: Interpretation of u/s 35(2) of the Agrl. IT Act for assessment years 1979-80 and 1980-81.

For 1979-80: The assessment order was dated 13th March 1985, despatched on 22nd April 1985, and received by the assessee on 26th April 1985. The Court applied principles from previous cases and concluded that the assessment order was not made within the prescribed period under s. 35(2). The Court emphasized that the order should be issued beyond the authority's control within the specified period, even if actual service is later. As the order was despatched after the five-year period, the Court ruled against the Revenue.

For 1980-81: The assessment order was dated 24th March 1986, despatched on 2nd December 1986, and received by the assessee on 5th December 1986. Following the same reasoning as for 1979-80, the Court found that the assessment order for this year also exceeded the time limit set by s. 35(2). The Court held in favor of the assessee and against the Revenue based on the principles established in previous judgments.

Conclusion: The Court answered the question negatively, ruling in favor of the assessee and against the Revenue based on the interpretation of u/s 35(2) of the Agrl. IT Act for the assessment years 1979-80 and 1980-81.