9911796707
TMI Blog1994 (1) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessment year 1979-80 made under section 143(3) read with section 144B was barred by limitation ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that a draft order made within the period of limitation should be forwarded to the assessee within the aforesaid period in order to make a valid assessment ? (3) Whether, on the facts and in the circumstances of the case, the Tribunal was legally justified in annulling the order of assessment for the assessment year 1979-80 ?" The background facts as culled out from the statement of case are as follows : Messrs. Om Agencies, Puri (in short, "the assessee"), which is partnership firm, filed two returns for the assessment year 1979-80, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that it was pending for orders. (iii) The order sheet dated March 16, 1982, clearly indicated that the draft assessment has been made under section 144B on a total income of Rs. 2,59,330. On the basis of these conclusions, he held that though the issue of the draft order was made on April 8, 1982, and the same was served on the assessee on April 19, 1982, it did not vitiate the order of assessment. Accordingly, the assessment was finally completed on September 3, 1982, under section 143(3)/144B and the order was despatched on September 10, 1982. Being aggrieved by the order, the assessee went in appeal before the Commissioner of Income-tax (Appeals), Orissa, and among other grounds contended that the assessment itself was barred by limi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act means "to put in course of transmission" or "to transmit". The Tribunal noticed that though the draft order was purportedly signed on March 16, 1982, the same was not in existence on that date as evident from the fact that the accompanying letter carried the type dated April 8, 1982. It was further noticed that when the forwarding letter itself was typed on April 8, 1982, the same could not have been signed on March 16, 1982, much less to say that the order was forwarded to the assessee before March 31, 1982. There was no enabling provision contained in the Act to condone the delay in making or forwarding the order of assessment. Accordingly, the assessments were nullified. On being moved by the Revenue, the questions as indicate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee within a period of thirty days, shall be excluded in computing the period of limitation for the purposes of section 153. Explanation 1 was substituted by the Taxation Laws (Amendment) Act, 1975, with effect from January 1, 1976, as regards clause (iv) with which we are concerned. The provision so far as relevant at the relevant time read as follows : " 153. Time-limit for completion of assessments and reassessments.(1) No order of assessment shall be made under section 143 or section 144 at any time after (a) the expiry of - . . . . (iii) two years from the end of the assessment year in which the income was first assessable, where such assessment year is an assessment year commencing on or after the 1st day of April, 1969 ; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 the draft order) to the assessee. (2) On receipt of the draft order, the assessee may forward his objections, if any, to such variation to the Income-tax Officer within seven days of the receipt by him of the draft order or within such further period not exceeding fifteen days as the Income-tax Officer may allow on an application made to him in this behalf. (3) If no objections are received within the period or the extended period aforesaid, or the assessee intimates to the Income-tax Officer the acceptance of the variatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n other words, the actual act of forwarding was done on April 8, 1982. A conjoint reading of sections 144B and 153 (Explanation 1) makes it clear that the Assessing Officer is required to "forward" a draft of the proposed order of assessment, which is referred to as the draft order in section 144B. The preparation of the draft order is not really of consequence. Even if a draft order is made and the same is not forwarded to the assessee within the time stipulated, the same loses its value. The word "forward" has been used at many places in sections 144B and 153 (Explanation 1) with which we are presently concerned. The expression "forward" in the context used means to "to send forward, post on farther (letter, parcel, etc.) to person for wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
