9911796707
TMI Blog2002 (7) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... order to be within time - - - - - Dated:- 2-7-2002 - Judge(s) : V. S. SIRPURKAR., N. V. BALASUBRAMANIAN. JUDGMENT The judgment of the court was delivered by V.S. SIRPURKAR J.-The question referred at the instance of the assesses as per the directions of this court under section 256(1) of the Income-tax Act, 1961, is as follows: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the assessment made in the case was not barred by limitation?" The following facts will highlight the controversy. The assessee is a company and filed the return of income for the assessment year 1978-79, admitting a total income of Rs. 4,03,800. The return is dated July 19, 1978. However, on Ju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 144B and the resultant action was without jurisdiction and, therefore, the advantage of the extended limitation due to the time taken in pursuing the matter to the Inspecting Assistant Commissioner and obtaining the directions could not be taken by the Department and the assessment made on May 19, 1981, would be beyond the last date of the completion of the assessment which should have been March 31, 1981. The Commissioner of Income-tax (Appeals) dismissed the appeal and held that the income returned was the final income offered by the assessee for assessment and for that the subsequent letter of the assessee was very relevant because it had the effect of lessening the original returned amount of Rs. 4,03,800 to Rs. 3,72,739. The Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Inspecting Assistant Commissioner. The underlying concept in the section is that when the claim made of the income by the assessee has to be varied substantially then it is incumbent upon the Income-tax Officer to take steps under section 144B. It is only under the light of this interpretation that the words "income or loss returned" would have to be read. Merely because, the section uses the words income or loss returned, it would not be only the amount which appears in the pro forma return but it would be in fact the income claimed by the assessee for a particular year. In this case, if the assessee had specifically written the letters to the Income-tax Officer that the income of Rs. 31,061 should be ignored and should be deducted out ..... X X X X Extracts X X X X X X X X Extracts X X X X
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