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Issues:
1. Assessment under section 144 of the Income-tax Act, 1961 challenged in appeal. 2. Rejection of application under section 144A of the Act. 3. Impact of completion of assessment on pending appeal before the Tribunal. 4. Consideration of assessment for the year 1985-86 on the assessment for 1984-85. Detailed Analysis: The petitioner was initially assessed for the assessment year 1984-85 under section 144 of the Income-tax Act, 1961. The assessment was challenged in appeal before the Commissioner of Income-tax (Appeals) who set aside the assessment and directed a fresh assessment, providing the petitioner with an opportunity to present his case. Subsequently, the Assistant Commissioner issued a notice to the petitioner regarding unexplained investment in house property construction, pursuant to the direction of the Commissioner of Income-tax (Appeals). The petitioner sought an adjournment citing the pending appeal before the Tribunal, but the application was rejected, leading to the petitioner's grievance regarding the potential impact on the pending appeal (issue 1). The petitioner raised two main grievances: firstly, the concern that any final assessment made as per the direction of the first appellate authority might affect the pending appeal before the Tribunal, rendering it infructuous. Secondly, the rejection of the application under section 144A of the Act without granting the petitioner a hearing was viewed as a violation of the principles of natural justice (issue 2). The court analyzed the timeline for completing the fresh assessment as directed by the Commissioner of Income-tax (Appeals) and upheld the correctness of the Assessing Officer's position regarding the completion of assessment within the specified period. The court clarified that if the Tribunal modifies the order while disposing of an appeal, the period for fresh assessment begins from the date of the Tribunal's order. It was emphasized that the completion of assessment by the Assessing Officer should not affect the pending appeal before the Tribunal, and the appeal must be decided on its merits without being influenced by the fresh assessment (issue 3). Furthermore, the court acknowledged the interconnectedness of the assessments for the years 1984-85 and 1985-86, highlighting that the result of the assessment for the latter year could impact the former year's assessment. The Assessing Officer was directed to consider this aspect while dealing with the assessment for the year 1984-85 (issue 4). In conclusion, the court disposed of the writ application in accordance with the directions provided in the judgment, ensuring that the completion of assessment does not prejudice the pending appeal before the Tribunal and emphasizing the need for a fair and independent consideration of the appeal on its merits.
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