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TMI Blog1991 (8) TMI 291X X X X Extracts X X X X X X X X Extracts X X X X ..... S. 65. That will enable the assessee to have the full details necessary to enable him to file a proper appeal, if needed, against the order and demand. - SLA NO 11270/91, SLA NO 11394/91 - - - Dated:- 6-8-1991 - Ranganathan S. , Fathima Beevi M. And Ojha N.D.,JJ. JUDGMENT Ranganathan J. -Sri Kalyan Kumar Ray, a tax lawyer from Calcutta, has preferred these petitions raising an attractive and ingenious but, in our opinion, a technical and untenable plea. We, therefore, dismissed the petitions on July 26, 1991, but stated that we would give our reasons later. Hence, this order. The petitions arise out of the petitioner's assessments under the Income-tax Act, 1961 ("the Act"). The point raised by Sri Ray, which is common to the tw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 and 140A leaving a sum of Rs. 2,120 which was adjusted against the refund due to the assessee for the assessment year 1981-82. Both assessment orders and (nil) demand notices were dated August 30, 1983, and both were signed/initialled by the Income-tax Officer. The assessee has not voiced any grievance against the computations and adjustments made except that he had not been awarded interest under section 214 of the Act. His short point is that, under the statute, the "assessment order" itself should contain the calculations of the tax, interest, etc., and of the net sum payable by/refundable to the assessee. These details, he urges, cannot be relegated to the demand notice. Failing compliance with this statutory requirement, he contend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng. The suggestion seems plausible but is not really tenable. As pointed out for the petitioner, judicial decisions under the 1922 Act as well as the present Act have read both clauses together. "Assessment" is one integrated process involving not only the assessment of the total income but also the determination of the tax. The latter is as crucial for the assessee as the former. Section 144, which also describes the same process, makes no distinction as suggested. It will not, therefore, be correct to read the provision as leaving undefined the process of determination of the net sum payable by the assessee. In our opinion, therefore, learned counsel for the petitioner is right in his sub-mission that the Income-tax Officer has to determi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. This sub-rule was dropped in 1964. Thereafter, the matter has been governed by departmental instructions. Under these, two forms are in vogue. One is the form of what is described as the "assessment order" (I. T. 30 or I. T. N. S. 65). The other is what is described as the "Income-tax Computation Form" or "Form for Assessment of Tax/Refund" (I. T. N. S. 150). The practice is that, after the "assessment order" is made by the Income-tax Officer, the tax is calculated and the necessary columns of I. T. N. S. 150 are filled up showing the net amount payable in respect of the assessment year. This form is generally prepared by the staff but it is checked and signed or initialled by the Income-tax Officer and the notice of demand follows there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner, vitiated. A brief reference may be made to the decisions on the issue. In Sushil Chandra Ghose v. ITO [1959] 35 ITR 379 (Cal), the assesses was served, apart from the assessment order, with a copy of the form known as I. T. N. S. 150 which was not signed by the Income-tax Officer but the court upheld the assessment because the original thereof had been duly signed. In S. Mubarik Shah Naqshbandi v. CIT [1977] 110 ITR 217 (J K), the "assessment order" did not determine the tax payable and there was no other paper or form containing the computation except the notice of demand. In R. Gopal Ramnarayan v. Third ITO [1980] 126 ITR 369 (Kar), the Tribunal had annulled an assessment because the tax calculations had been made on a separate s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he salutary and useful practice of incorporating the entire tax calculations in I. T. N. S.. 65 Form itself or, in the alternative, make the I. T. N. S. 150 an annexure to form part of the assessment order, have it signed by the Income-tax Officer and have it served on the assessee along with I. T. N. S. 65. That will enable the assessee to have the full details necessary to enable him to file a proper appeal, if needed, against the order and demand. If these safeguards are not taken, there is a danger of the tax calculations being left entirely to the subordinate staff, the Income-tax Officer contenting himself with a cursory glance thereat. Though, largely, the tax calculations are only matters of detail and arithmetic, there do arise som ..... X X X X Extracts X X X X X X X X Extracts X X X X
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