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TMI Blog1996 (7) TMI 119X X X X Extracts X X X X X X X X Extracts X X X X ..... ces of the case, the Appellate Tribunal is justified in law in cancelling the assessment as time-barred by two days ? 2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is correct in law in interpreting the word ' forward ' in Explanation 1, sub-clause (iv) under section 153 to mean ' despatch ' and not ' issue ' ? 3. If the answer to the above question is in the affirmative, whether it could not be said that, on the facts and in the circumstances of the case, the draft order was effectively and constructively forwarded on March 27, 1979, viz., the date of issue of the said order ? " The assessee is an individual. In the assessment year 1976-77, the assessee filed her return. However, the Income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... should be taken as the date of " forwarding ". He argues that a purposive construction should be given to the provisions of the taxing statute and the purpose of the provision is to give a fair opportunity to the assessee to object to the draft order and the time limit fixed should not be so strictly construed as to make the order of assessment barred by limitation. None appeared for the assessee. To appreciate the contention of learned standing counsel for the Revenue, it would be apposite to refer to section 144B of the Act, in so far as it is relevant for our purpose, which reads as follows : " 144B. (1) Notwithstanding anything contained in this Act, where, in an assessment to be made under sub-section (3) of section 143, the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment : Provided that no directions which are prejudicial to the assessee shall be issued under this sub-section before an opportunity is given to the assessee to be heard. (5) Every direction issued by the Deputy Commissioner under sub-section (4) shall be binding on the Assessing Officer. (6) For the purposes of sub-section (1), the Board 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...." Section 144B was inserted by the Taxation Laws (Amendment) Act, 1975, with effect from April 1, 1976. It was on the statute book for 13 years and was omitted by the Direct Tax Laws (Amendment) Act, 1987, with effect from April 1, 1989 ; it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clause (iv) of Explanation 1 thereto. We shall read this provision here : " 153. (1) No order of assessment shall be made under section 143 or section 144 at any time after the expiry of--- (a) two years from the end of the assessment year in which the income was first assessable ; or . . . Explanation 1.--- In computing the period of limitation for the purposes of this section--- . . . (iv) the period (not exceeding one hundred and eighty days) commencing from the date on which the Assessing Officer forwards the draft order under sub-section (1) of section 144B to the assessee and ending with the date on which the Assessing Officer receives the directions from the Deputy Commissioner under sub-section (4) of that section, or, in a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he view that the expression " forward " means " despatch ". It negatived the contention that it should be understood as meaning " issue ". It also did not agree that it means " served ". It has observed that " forward " comprehends something more than mere issue though it should not be taken to mean actual service of the order. As a fact the Tribunal noted that on March 29, 1979, the draft order was handed over by the Income-tax Officer to the assessee's representative. The word " forward " is a word of common usage and has to be understood in the meaning it bears in the English language. In Black's Law Dictionary, Sixth edition, at page 655, the meaning of the word " forward " is given as under : " To send forward ; to send towards the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 77. The period of limitation mentioned in section 153(1)(a) would expire by March 31, 1979. That is the last date for making the assessment, but by virtue of the provisions of clause (iv) of Explanation 1 to section 153, the said period of two years would get extended from the date of forwarding of the draft order till the date of receipt of directions from the Deputy Commissioner (IAC). The draft order was signed on March 27, 1979, and it was handed over to the representative of the assessee on March 29, 1979. We have already held that that date is the date of forwarding of the draft order. So the period of limitation from March 29, 1979, till September 22, 1979, the date on which the approval of the Deputy Commissioner (IAC) was received ..... X X X X Extracts X X X X X X X X Extracts X X X X
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