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TMI Blog1998 (12) TMI 621X X X X Extracts X X X X X X X X Extracts X X X X ..... the years under consideration were passed within the period of limitation ? 2. Whether the Tribunal was right in law in holding that the assessment orders passed by the Wealth-tax Officer were valid and were within the prescribed period of limitation even though there was no computation of tax liability in the assessment orders passed by the Wealth-tax Officer ?" The reference relates to the assessment years 1971-72 to 1974-75 under the Wealth-tax Act. Prior to April 1, 1975, the Wealth-tax Act provided no limitation for completion of assessments under it. By insertion of section 17A by the Taxation Laws (Amendment) Act, 1975, with effect from January 1, 1976, for the first time, a period of limitation for completion of assessment was p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act before the liability of the assessee is communicated to assessee : (i) computation of net wealth ; (ii) computation of tax liability on the net wealth so computed, and (iii) the communication of the tax liability so computed. It was further of the opinion that while the first two stages are covered by limitation, the demand notice which is covered under the third stage is merely an intimation to the assessee of tax liability computed as a result of assessment order. It therefore did not agree with the Appellate Assistant Commissioner that the date of service of notices should also be within the period of limitation. The question is no more res integra. It has been now settled by the apex court that the term "assessment" in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of wealth-tax payable by him or the amount refundable to him on the basis of such return." Following this decision in CIT v. Purshottamdas T. Patel [1994] 209 ITR 52, a Division Bench of this court opined that the two actions need not be simultaneous ; they may be taken separately and at different times but the assessment is complete only when both the processes are over, namely, determination of net wealth and determination of tax payable on such net wealth. It is only when both the processes are complete that assessment can be said to be completed. As a result, one must reach the conclusion that both the processes must take place prior to the expiry of the period of limitation. In Kalyankumar Ray's case [1991] 191 ITR 634 (SC), the cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... axable wealth has taken place on the last date before the expiry of the period of limitation. If tax computation has taken place after March 31, 1979, obviously assessments in relation to the assessment year ending before April 1, 1975, shall be barred by limitation. Neither the Appellate Assistant Commissioner nor the Tribunal has enquired whether computation of tax has taken place on March 31, 1979, or thereafter. It is a question of fact when computation of tax payable has actually taken place. In the absence of necessary finding to that effect, it is not possible for us to answer the question whether the assessments in question were completed prior to March 31, 1979, or were barred by limitation. It will therefore be for the Tribunal, w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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