9911796707
TMI Blog1996 (6) TMI 28X X X X Extracts X X X X X X X X Extracts X X X X ..... ts and in the circumstances of the case, the Tribunal was right in holding that section 144B is applicable to the facts of the present case and that the assessment made in this case was not barred by limitation ?" The facts leading to the above reference can be briefly stated thus: For the aforesaid assessment year, the assessee filed a return on September 29, 1979, showing the taxable income as nil. The Income-tax Officer as per the draft assessment order dated February 19, 1982, proposed to assess the income at Rs. 2,08,400. The said draft assessment order was forwarded to the Inspecting Assistant Commissioner for approval. Subsequently, the draft proposal was approved by the Inspecting Assistant Commissioner under section 144B of the I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e limit for completion of the assessment is controlled by section 153(1)(a) of the Act alone. In order to appreciate the contentions advanced by counsel for the assessee, it would be appropriate to reproduce section 144B of the Act, as it stood then. " 144B. (1) Notwithstanding anything contained in this Act, where, in an assessment to be made under sub-section (3) of section 143, the Income-tax Officer proposes to make any variation in the income or loss returned which is prejudicial to the assessee and the amount of such variation exceeds the amount fixed by the Board under sub-section (6), the Income-tax Officer shall, in the first instance, forward a draft of the proposed order of assessment (hereafter in this section referred to as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oard may, having regard to the proper and efficient management of the work of assessment, by order, fix from time to time, such amount as it deems fit : Provided that different amounts may be fixed for different areas Provided further that the amount fixed under this sub-section shall, in no case, be less than twenty-five thousand rupees. (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. " In order to attract section 144B(1), there must be a variation in the income or loss returned which is prejudicial to the assessee and the amount of such variation must ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nspecting Assistant Commissioner by his order dated June 22, 1982, directed the Officer that the entire contribution should be brought to tax. On behalf of the assessee it was contended that there is no question of variation of income involved in the process of computation under section 144B of the Act. This is not a case where the assessee has not filed any return. This is a case where the assessee has filed a return, of course, showing the taxable income as nil. Therefore, it cannot be said that there is no variation between the income returned by the assessee and the income proposed by the Officer. It would necessarily lead to the conclusion that section 144B will apply to the facts of the present case. The next question to be examin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on, the extended period of limitation provided in clause (iv) of Explanation 1 to section 153(1) is available to the Department. In other words, in a case where objection has been filed by the assessee against the draft order of assessment a period not exceeding one hundred and eighty days shall be excluded while computing the period of limitation provided in section 153(1)(a). The assessment order (annexure "C") reveals that the Income-tax Officer has forwarded the draft order of assessment along with the objection of the assessee to the Inspecting Assistant Commissioner for approval. The draft assessment order was passed on February 19, 1982. The Inspecting Assistant Commissioner by his order dated June 22, 1982, has directed that the ent ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
