9911796707
TMI Blog1997 (9) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... re, later on, returned to the assessee. The Assessing Officer, during the course of assessment proceedings, proposed additions exceeding Rs. 1,00,000. He, therefore, forwarded a draft assessment order to the assessee under section 144B(1) of the Act on March 15, 1983. The assessee filed objections on March 30, 1983, after seeking extension of time. The draft assessment order together with the objections filed by the assessee, was forwarded to the Inspecting Assistant Commissioner on April 6, 1983, under section 144B(4). Directions from the Inspecting Assistant Commissioner were received through letter dated September 2, 1983. The Assessing Officer thereafter on September 3, 1983, framed assessment, keeping in view the directions issued by the Inspecting Assistant Commissioner, on a total income of Rs. 9,18,491. The assessee went in appeal before the Commissioner of Income-tax (Appeals) challenging the various additions and disallowances made by the Assessing Officer. The appeal was partly allowed. Both the assessee and the Department went in appeal before the Tribunal. The assessee raised a plea that the assessment was made on September 3, 1983, and was, therefore, barred by limi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... extended period. After the objections are received, the Income-tax Officer has to forward the draft order together with the objections to the Inspecting Assistant Commissioner who shall, after considering the draft order and the objections filed by the assessee and also after giving an opportunity of hearing to the assessee, issue directions for the guidance of the Income-tax Officer to enable him to complete the assessment. The Income-tax Officer shall thereafter frame the assessment in accordance with the directions received from the Inspecting Assistant Commissioner. As has been mentioned earlier, assessment had been initially made under section 143(3) read with section 144 of the Act. Since it was an ex parte assessment, the Commissioner of Income-tax (Appeals) allowed the assessee's application under section 146. Thus the ex parte assessment was set aside by an order of the Commissioner of Income-tax (Appeals), dated September 27, 1980. The normal period of limitation in such a case has been laid down in sub-section (2A) of section 153 of the Act. In a case where fresh assessment is required to be made, following an order of the Commissioner of Income-tax (Appeals) under sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral or special order, direct that the powers conferred on the Income-tax Officer under the Act shall be exercised by the Inspecting Assistant Commissioner in respect of any specified case or class of cases or any specified person or class of persons. Section 125A further empowers the Commissioner of Income-tax to give concurrent powers to the Inspecting Assistant Commissioner for any area, persons or classes of persons, incomes or classes of income or cases or classes of cases. In such a situation, all or any of the powers or functions, conferred on or assigned to the Income-tax Officer under the Act, shall be exercised or performed concurrently by the Inspecting Assistant Commissioner also. It would be seen that the powers conferred on the Income-tax Officer under the Act, can either be given by the Commissioner of Income-tax to the Inspecting Assistant Commissioner exclusively under section 125(1) or concurrently under section 125A(1) of the Act. Where concurrent powers have been given both to the Income-tax Officer and the Inspecting Assistant Commissioner it is for the Inspecting Assistant Commissioner to issue further directions to the Income-tax Officer as to how the Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection, where he exercises the powers or performs the functions of an Assessing Officer. Sub-section (7) of section 144B of the Act reads as under : "(7) Nothing in this section shall apply to a case where an Inspecting Assistant Commissioner exercises the powers or performs the functions of an Income-tax Officer in pursuance of an order made under section 125 or section 125A." Shri B. S. Gupta, senior counsel for the Department, has argued that the exemption from following the procedure specified in section 144B has been given to the Deputy Commissioner of Income-tax/Inspecting Assistant Commissioner only when he actually exercises the powers or performs the functions of an Assessing Officer. Where the Inspecting Assistant Commissioner, having concurrent jurisdiction under section 125A, did not choose to perform the function of making assessment, he would not then act as an Assessing Officer making assessment and, therefore, the question of exemption under sub-section (7) would not arise. Shri Gupta has argued that where the Income-tax Officer proceeded to make additions or disallowances exceeding Rs. 1,00,000, he was under an obligation under section 144B to prepare a draft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceeds to exercise the powers or performs the functions of an Assessing Officer, because, in that situation, the question of seeking directions from the Inspecting Assistant Commissioner for completing the assessment would not arise. If he actually performs the functions of an Assessing Officer, he would indeed be not required to follow the procedure and would be exempted. The language used in sub-section (7) does not raise a presumption that an Inspecting Assistant Commissioner, to whom all or any of the powers conferred on the Income-tax Officer under the Act have been given, shall not exercise jurisdiction under section 144B when a draft of the proposed order is received from the Income-tax Officer seeking directions. Sub-section (7) does not say that the procedure, laid down in section 144B, shall not be followed by the Income-tax Officer where power had been conferred on the Inspecting Assistant Commissioner under section 125A of the Act. On the other hand, sub-section (7) excludes the applicability of section 144B where the Inspecting Assistant Commissioner exercises the powers or performs the functions of an Assessing Officer. If sub-section (7) is read in the light of the sc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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