1986 (1) TMI 61 - HC - Income Tax

Summary

Issues:
1. Validity of reassessment based on a revised return.
2. Whether the initial assessment completed was barred by time.
3. Filing of original return under section 139(4) or section 139(5) of the Income-tax Act.
4. Extending the period of limitation for assessment based on a revised return.

Analysis:
1. The court addressed the validity of the reassessment based on a revised return filed by the assessee. The Tribunal had set aside the initial assessment and directed the Income-tax Officer to reframe the assessment. The assessee challenged the reassessment on the grounds of time limitation. The court held that the assessing authority had to frame the assessment in accordance with the remand order and could not consider any point beyond its scope. The plea of limitation against the original assessment was not raised before the Tribunal and stood concluded by the remand order.

2. The court examined whether the initial assessment completed on a specific date was barred by time. The original return filed by the assessee was a crucial factor in determining the limitation period. The Income-tax Officer found that the return was filed under sub-section (1) or (2) of section 139, while the Appellate Assistant Commissioner stated it was filed under section 139(4). The Tribunal did not agree with the assessee's contention that the original return could not be revised under section 139(5), indicating it was not filed under section 139(4). As the filing provision was a factual matter, the Tribunal's finding was considered binding, and it was concluded that the assessment was within the time limit.

3. The court analyzed whether the original return was filed under section 139(4) or section 139(5) of the Income-tax Act. The conflicting views of the Income-tax Officer and the Appellate Assistant Commissioner were considered, with the Tribunal's decision being crucial. Since the Tribunal did not accept the assessee's argument that the original return could not be revised under section 139(5), it was inferred that the return was not filed under section 139(4), impacting the limitation period for assessment.

4. Lastly, the court evaluated whether the revised return filed by the assessee could extend the period of limitation for assessment. The assessment made based on the revised return was challenged as time-barred. However, based on the findings regarding the filing of the original return and the Tribunal's decision, it was determined that no question of law on the point of limitation arose. Consequently, the petition was dismissed, and each party was directed to bear their own costs.