1986 (11) TMI 125

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..... order of the AAC setting aside an assessment made under section 144 of the Income-tax Act, 1961 ('the Act'). 2. The AAC found that an application under section 146 of the Act had been filed by the assessee but it had not been disposed of by the ITO within the period of limitation of 90 days prescribed thereunder. He held that this would automatically result in the reopening of the assessment and .....

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..... he merits of the assessment could be taken into account only if the default of the assessee resulted in a final rejection of a claim for another opportunity to be heard. But at present, the claim for another opportunity has to be decided within 90 days. The result will be that either the assessee's claim is deemed to be accepted when no order is passed within 90 days or, it is deemed to be rejecte .....

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..... AAC was in error in assuming that the failure to pass an order on the application made under section 146 within the period prescribed thereunder would result in the automatic cancellation of the assessment by necessary implication, it could not result in the more disadvantageous position of the assessee not having a right of appeal against that rejection of an effective consideration of the applic .....

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