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TMI Blog1983 (10) TMI 139X X X X Extracts X X X X X X X X Extracts X X X X ..... assessments were originally made in 1974, 1976 and 1977. The ITO had added back certain cash credits and also income from certain properties treating the assessee as a benamidar in respect of such properties. The assessee appealed and the appeals were disposed of by two orders of the same date 18-2-1980, each in respect of the two assessment years. The Commissioner (Appeals) was of the opinion that further enquiries were required in respect of both the additions. He, therefore, set aside the assessments for all the four years and directed that fresh assessments should be made by the ITO after making due enquiries. Thereafter the ITO made a draft assessment by invoking section 144B and served it on the assessee on 30-3-1982. The assessee obj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 44B must be excluded and, therefore, the assessments made were in time. On the other hand, the contention of the assessee was that section 144B could not be invoked and, therefore, the time taken for such an unnecessary and illegal procedure could not be excluded in computing the period of limitation. It was argued that the basis of section 144B itself was that a superior authority should apply his mind and this was unnecessary where a direction has already been given by an appellate authority superior to the IAC and, therefore, even on the basis of legislative intention, Parliament could not have contemplated that section 144B was applicable in a case of assessment made in compliance with the directions given under section 251 of the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. 6. It is pointed out by the revenue that the Explanation starts with the words 'in computing the period of limitation for the purposes of this section' covering all the preceding sub-sections and would, therefore, apply to sub-section (2A) also. This contention could not be seriously controverted by the assessee because the other clauses in the Explanation refer to time taken for reopening any assessment and giving a fresh opportunity to the assessee as required by section 129 of the Act, time taken by any stay of the proceedings by any Court. time taken for auditing the accounts on the direction of the ITO which equally apply to a case of fresh assessment made in pursuance of directions under section 250 referred to in sub-section (2A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st naturally follow the procedure prescribed therein. On behalf of the assessee it was argued that there was an anomalous situation where an ITO acting under the direction of the Commissioner (Appeals) given under section 250 again refers to the IAC, who is junior to the Commissioner (Appeals), for getting directions and he is bound by his direction rather than the direction of the superior authority quite contrary to the object of section 144B which was to associate a superior authority in the making of assessment to avoid harassment to the assessee. It may be that while framing the provisions of the Act this situation has not been envisaged. But we must also remember that when the assessment was set aside by the Commissioner (Appeals) wit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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