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TMI Blog1986 (6) TMI 90X X X X Extracts X X X X X X X X Extracts X X X X ..... plications under section 143(2)(a) objecting to the above assessments vide their applications filed in March 1983. Vide order dated 12-4-1983 the ITO held that the above objections are be misconceived, unmaintainable and untenable. The above order is described as order under section 143(2)(a) and 143(3)(b) and, therefore, according to the assessee these orders were to be passed before 31-3-1983 as per limitation prescribed under section 153 of the Act and, therefore, the orders passed on 12-4-1983 were barred by limitation. The AAC accepted the above contention of the assessee and annulled the order passed by the ITO. Hence, these appeals by the revenue. 2. The ground of appeal in all the five appeals is common as under : "On the facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... application under section 143(2)(a) is made by the assessee objecting to the above assessment and then the ITO has to complete a fresh assessment under clause (b) of section 143(3). The counsel further argued that this is what in fact the ITO has done as is clear from the title of the order which says 'it is an order under section 143(2)(a) and 143(3)(b) of the Income-tax Act'. Shri Gupta referred to the provisions of section 153 and said that it bars passing of any order of assessment after two years from the end of the assessment year in which the income was first assessable. The assessment year being 1980-81, all orders of assessment were required to be completed by 31-3-1983 and, thus, the order passed on 12-4-1983 was clearly barred by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment, an application to the Income-tax Officer objecting to the assessment, or (b) the Income-tax Officer shall serve on the assessee a notice requiring him, on a date to be therein specified, either to attend at the Income-tax Officer's office or to produce, or to cause to be there produced, any evidence on which the assessee may rely in support of the return : (3) On the day specified in the notice issued under sub-section (2), or as soon afterwards as may be, after hearing such evidence as the assessee may produce and such other evidence as the Income-tax Officer may require on specified points, and after taking into account and all relevant material which he has gathered,--- (a) (b) in a case where an assessment has been m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee files an application under section 143(2)(a) objecting to an assessment made under section 143(1), it is mandatory for the ITO to issue a notice in terms of section 143(2). The said provision has used the words 'Income-tax Officer shall serve a notice on the assessee'. After the issue of notice, the ITO is required to make a fresh assessment of total income in terms of clause (b) of sub-section (3) of section 143. In every case where objection is raised by the assessee under section 143(2)(a), it is mandatory for the ITO to make a fresh assessment. The above assessment made has to be treated as an order of assessment under section 143 to which provisions of section 153 are made applicable. The contention of the learned departmental r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the assessee or the production by him of any evidence in support of the return filed by him. In such cases, the assessee is entitled under section 143(2)(a) of the Act to make an application within one month to the Income-tax Officer objecting to such assessment. On receipt of an application under this provision, the Income-tax Officer is required to make a fresh assessment after considering the objections raised by the assessee. 18.2 It had come to notice that, in certain cases, where order of assessment under section 143(1) of the Act was made towards the expiry of the period of limitation laid down in section 153(1), the income-tax Officer was not in a position to make a fresh assessment because the period of limitation had expire ..... X X X X Extracts X X X X X X X X Extracts X X X X
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