9911796707
TMI Blog1991 (4) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... d taken in those appeals was that the assessments were barred by limitation under section 153(2) read with clause (ii) of Explanation 1. The Commissioner of Income-tax (Appeals) held that the assessments were not barred by limitation. The assessee came up in appeal before the Tribunal. The Tribunal did not accept the contentions and reasonings advanced on behalf of the assessee and held that the assessments were completed well within time. At the instance of the assessee, the following question of law was referred to this court by the Tribunal : " Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the assessments for the assessment years 1956-57 to 1958-59 were not barred by limitation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... On 21-8-1975 stay allowed again for further 4 weeks (28 days), i.e., from 22-8-1975 to 18-9-1975 28 days ------------------------------------------------------ 10 years 3 months 81 days or 10 years 5 months 21 days, i.e., up to 17-9-1975. The stay was vacated on September 18, 1975, and since the period of court's stay was in force during the usual 4 year period of limitation in this case from April 1, 1965, to March 31, 1969, the 4 year period not availed of earlier was allowed with effect from September 18, 1975, i.e., up to September 18, 1979. The draft assessment orders were made on September 17, 1979, by the Income-tax Officer and forwarded to the assessee. Thus, the Income-tax Officer had taken the total p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the assessee and all other proceedings and actions to be taken by the Income-tax Officer and the Inspecting Assistant Commissioner which was to continue as directed by the court. It has been contended on behalf of the assessee that there was no stay during the period from September 18, 1975, to September 29, 1975, and the Income-tax Officer was free to make assessments during this period. It has been further submitted that the period of 180 days at the maximum which was available to the Inspecting Assistant Commissioner for giving directions to the Income-tax Officer under section 144B as per Explanation 1(iv) to section 153 of the Income-tax Act, 1961, is calculated as under : The Income-tax Officer's draft assessment orders are dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it arising out of the delay in respect of the directions from the Inspecting Assistant Commissioner since no extra time was available at his disposal being more than one day from August 4, 1980, the rest already consumed by him earlier. The only point for determination in this case is as to whether the reassessments made under section 147(a) of the Income-tax Act, 1961 (for brevity, " the Act for these three assessment years 1956-57 to 1958-59 were barred by limitation. Section 153(2) read with clause (ii) of Explanation 1 thereto reads as under : " 153. (2) No order of assessment, reassessment or recomputation shall be made under section 147 (a) where the assessment, reassessment or recomputation is to be made under clause (a) of that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the final orders, if any, and notice of demand will not be served on the petitioner pending disposal of this application. The said order of the High Court stood vacated on July 12, 1979, when the appeal was dismissed and, thereafter, the assessee filed a special leave petition before the Supreme Court. The Supreme Court passed, inter alia, the following order on January 7, 1980 : " That all further proceedings in respect of the three purporte draft orders of assessment all dated 17th September, 1979, for the assessment years 1956-57 to 1958-59 as contained in the three purported letters and/or notices all dated 17th September, 1979, issued by the Income-tax Officer 'I' Ward, Camp District II, Calcutta, shall go on but final orders shall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... two reasons, first, that most of the period taken by the Inspecting Assistant Commissioner was covered by the period during which the assessment proceeding was stayed by the High Court and the Supreme Court. Secondly, it was not necessary to make reference under section 144B since the said provision is not applicable to reassessment proceedings under section 147. It was contended on behalf of the assessee that the date of completion of assessment should be taken as October 22, 1980, on which date the assessment order was served on the assessee and not on October 15, 1980, when it was signed by the Income-tax Officer. In our opinion, what is required for completion of the assessment is the determination of the tax liability and issue of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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