9911796707
TMI Blog2014 (3) TMI 577X X X X Extracts X X X X X X X X Extracts X X X X ..... .A.T. was correct in approving the reasoning of the Appellate Commissioner that the assessment order for the year 1977-78 passed under Section 144 read with Section 251 of the Act on 30.03.1987 was time-barred? ii) Whether on the facts and in the circumstances of the case, the I.T.A.T. was correct in law in canceling the assessment order for the assessment year 1977-78 passed on 30.03.1987 under Section 144 read with Section 251 of the Act? Originally, the assessee was assessed to income-tax under Section 143(3) of the Income-tax Act, 1961 (for short "the Act") on 26.03.1983, and thereafter, assessment order came to be set aside by the Commissioner on 21.03.1985 in exercise of the powers conferred under Section 263 of the Act with a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... canceling the assessment order dated 30.03.1987 made under Section 144 read with Section 251 of the Act before the Income-tax Appellate Tribunal. Before the Tribunal the Department failed to produce the demand and collection register for the assessment year 1977-78 and made no effort to dislodge the finding recorded by the Commissioner. The Tribunal having verified the facts on record, came to a categorical opinion that the assessment order is anti-dated as 30.03.1987, but was obviously made after that date, and in that view of the matter, dismissed the appeal filed by the Revenue. The learned senior counsel for the Department/Revenue submits that merely because the order was dispatched on 08.05.1987 and received on 10.09.1987, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -tax Act, 1961 at the relevant point of time may be noticed as under: Section 143(2): In a case referred to in sub-section (1), if the Assessing Officer considers it necessary or expedient to ensure that the assessee has not understated the income or has not computed excessive loss or has not under-paid the tax in any manner, he shall serve on the assessee a notice requiring him, on a date to be specified therein, either to attend his office or to produce, or cause to be produced there, any evidence on which the assess may rely in support of the return: Provided that no notice under this sub-section shall be served on the assessee after the expiry of the financial year in which the return is furnished or the expiry of six months from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Section 143(2) is mandatory for making an assessment, and further, on account of the proviso, no notice shall be issued if the assessment is being made after the expiry of the financial year in which the return is furnished or the expiry of six months from the end of the month in which the return is furnished whichever is later. In the present case, proviso does not apply as the assessment was made pursuant to the orders made by the revisional Commissioner under Section 263 of the Act. Section 144 of the Act, at the relevant point of time, further mandates issuance of a notice and an opportunity of hearing to the assessee before making the best judgment assessment. In this case, the finding of the authorities below is to the effect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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