9911796707
TMI Blog2007 (4) TMI 147X X X X Extracts X X X X X X X X Extracts X X X X ..... dated October 16, 1992, passed in I. T. A. No. 42 (ASR)/1988, in respect of the assessment year 1978-79 "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in holding that the extended time limitation period of 180 days stipulated under Explanation 1(iv) of section 153 of the Income-tax Act, 1961, was not avail able to set aside assessment ?" 2 Briefly the facts, as noticed in the statement of case, are that the assessee was deriving income from manufacture and sale of domestic appliances and machines tools. Return for the assessment year in question was filed declaring the same at Rs. 94,410. The assessment under section 143(3) of the Income-tax Act, 1961 (for short "the Act"), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 153. of the Act, which are as under : "153.(1) . . . . . (2A) Notwithstanding anything contained in sub-sections (1) and (2), in relation to the assessment year commencing on the 1st day of April, 1971, and any subsequent assessment year, an order of fresh assessment under section 146 or in pursuance of an order under section 250, section 254, section 263 or section 264, setting aside or cancelling an assessment, may be made at any time before the expiry of two years from the end of the financial year in which the order under section 146 cancelling the assessment is passed by the Income-tax Officer or the order under section 250 or section 254 is received by the Commissioner or, as the case may be, the order under section 263 or sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommencing from the date on which the Income-tax Officer forwards the draft order under sub-section (1) of section 144B to the assessee and ending with the date on which the Income-tax Officer receives the directions from the Inspecting Assistant Commissioner under sub section (4) of that section, or, in a case where no objections to the draft order are received from the assessee, a period of thirty days, or (v) in a case where an application made before the Income-tax Settlement Commission under section 245C is rejected by it or is not allowed to be proceeded with by it, the period commencing from the date on which such application is made and ending with the date on which the order under sub-section (1) of section 245D is received by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (iv) of Explanation 1 to section 153 of the Act clearly provides that while computing the period of limitation for the purposes of the section, the period not exceeding 180 days commencing from the date on which the Income-tax Officer forwards the draft or under sub-section (1) of section 144B of the Act to the assessee and ending with the date on which the Income-tax Officer receives the direction from the Inspecting Assistant Commissioner under sub-section (4) of section 144B of the Act, is to be excluded. 6 It is further contended by learned counsel for the Revenue that the Tribunal had gone wrong in interpreting the provisions of section 153 of the Act. It has completely failed to take notice of the provisions in its entirety. An Expla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to section 271(1)(c) is a part of section 271. When the Assessing Officer or the Appellate Assistant Commissioner issues a notice under section 271, he makes the assessee aware that the provisions thereof are to be used against him. These provisions include the Explanation. By virtue of the notice under section 271 the assessee is put to notice that, if he does not prove, in the circum stances stated in the Explanation, that his failure to return his correct income was not due to fraud or neglect, he shall be deemed to have concealed the particulars of his income or furnished inaccurate particulars thereof, and, consequently, be liable to the penalty under the section. No express invocation of the Explanation to section 271 in the notice u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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