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TMI Blog2006 (8) TMI 154X X X X Extracts X X X X X X X X Extracts X X X X ..... contained under section 153 appropriately and legally and whether the learned Tribunal is legally justified to come to the conclusion that the present assessment order is clearly barred by limitation and is valid? (2) Whether, on the facts and in the circumstances of the case on a reading of the agreement it is correct to interpret that the assessee-company is not a selling agent and as such an independent contractor under this agreement and that the act of the principal, i.e., the Orissa Forest Department or the State Government? (3) Whether, on the facts and in the circumstances of the case on a reading of the agreement entered into between the parties and by reading the resolution period but with retrospective effect, the learned Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Kendu Leaves Co-ordination Committee decided in its meeting held on August 9, 1978, that the agreement between the Government and the assessee should be adopted with the modification that in case the average selling price of kendu leaves would be more than the amount (cost of production + royalty + marketing expenses) indicated in the agreement, the excess could be paid to the Government. The Committee also declined to grant rebate on the royalty for 1973 and 1974 crops. The assessee's accounting period ended on March 31, 1978, and it made a provision for payment of collected additional amount of Rs. 1,35,92,730 to the State Government. The Assessing Officer was of the opinion that the extra profit earned was assessable in the hands ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rch 31, 1989. The said order was again challenged before the Commissioner of Income-tax (Appeals) on various grounds including on the ground that the order of assessment made was barred by limitation. It was contended that since the assessment had been reopened under section 146 of the Income-tax Act, fresh assessment was to be completed within the time-limit prescribed under sub-section (2A) of section 153 of the Income-tax Act. It was further argued before the Commissioner of Income-tax (Appeals) that since the proceedings had been initiated by issuance of notice under section 148 of the Act, the time limit under section 153(1)(c) of the Act did not apply. The Commissioner of Income-tax (Appeals) upheld the order of assessment and dismiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there was no infirmity in the order of the Commissioner of Income-tax (Appeals) who rightly held that there was no limitation in passing the order of assessment. In this regard, Mr. S. N. Ratho, learned counsel for the respondent-assessee, submitted that the language of section 153(2A) was clear and that the assessment order should have been passed on or before March 31, 1985, and therefore the present order of assessment was clearly barred by limitation. According to him, clause (c) of sub-section (1) of section 153 deals with period of limitation regarding filing of revised return but sub-section (2A) was silent in that regard. Let us now see the provisions of section 153, which deals with completion of assessment and reassessment. A b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der was passed. The order in this case under section 146 was passed on March 18, 1983. The period of two years expired on March 31, 1985, and the assessment order was passed on January 21, 1986. The argument of learned counsel for the Revenue that as the respondent has filed the revised return showing its willingness to be assessed, the question of limitation is not material and the Assessing Officer had the option to make the assessment after the expiry of two years period, is not acceptable because there is no provision under section 153(2A) like that of the provision under section 153(1)(c) of the Income-tax Act which provides for completion of assessment within one year from the date of filing of a return or revised return. Considering ..... X X X X Extracts X X X X X X X X Extracts X X X X
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