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TMI Blog1990 (10) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... in the circumstances of the case, the Tribunal was correct in holding that the word 'forward' used in section 144B(2) is equivalent to the word 'received' used in section 144B(3) of the Income-tax Act, 1961 ?" I. T. R. No. 84 of 1987: "Questions referred at the instance of the Revenue : (1) Whether, on the facts and in the circumstances of the case, the Tribunal is justified in holding that the assessee is entitled to claim deduction of the bonus paid in excess of 20% of the salary ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal is justified in holding that the assessee is entitled to weighted deduction under section 35B in respect of E. C. G. C. premium ?" It may not be necessary to answer all the questions referred by the Appellate Tribunal, since question No. 2 in I. T. R. No. 83 of 1987 is fundamental or vital one which has its impact on the validity of the assessment itself. The other questions arise while disposing of the assessment finally. In the light of our answer to question No. 2, referred to this court at the instance of the assessee in I. T. R. No. 83 of 1987, it may not be necessary to deal with the other questions at this sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... together with the objections of the assessee to the Inspecting Assistant Commissioner, under section 144B(4) of the Act, was grossly irregular and unjustified and the subsequent completion of the assessment on April 15, 1981, without following the procedure indicated in section 144B(4) of the Act, is illegal and improper.-This plea as such does not appear to have been pressed nor considered by the Commissioner of Income-tax (Appeals). Though the Appellate Tribunal was also inclined to take the view that the assessee did not press the above point before the Commissioner of Income-tax (Appeals), it proceeded to consider the matter on merits and held that since the objections of the assessee reached the Income-tax Officer only on April 7, 1981, which is beyond the seven-day period, the assessment made by the Income-tax Officer, without referring the matter to the Inspecting Assistant Commissioner under section 144B(4) of the Act, is valid and proper. The assessment was also held to be within time. Other matters were also considered on merits by the Income-tax Appellate Tribunal. The appeal filed by the Revenue was regarding the entitlement of the assessee to deduction of payment of pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) Every direction issued by the Inspecting Assistant Commissioner under sub-section (4) shall be binding on the Income-tax 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: 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 cases where the Income-tax Officer proposes to make any variation in the income returned which is prejudicial to the assessee and the amount of such variation exceeds the amount fixed by the Board, he should, in the first instance, "forward" a draft of the proposed order of assessment to the assessee. On receipt of the same, under section 144B(2) of the Act, the assessee may "forward" his objections, if any, to such variation to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "received" within the period of seven days of the receipt of the draft order by the assessee. But, section 144B should be understood in a practical and meaningful way. The word "received" occurring in section 144B(3) of the Act should receive a meaning which will not render section 144B(2) of the Act otiose or meaningless and so viewed, it is only proper to understand the word "received" in section 144B(3) of the Act, as one "forwarded" within the period provided in section 144B(2) of the Act. The dictionary meaning of the word "forward" occurring in section 144B(1) of the Act, is only "to send" ; "despatch" ; "transmit". It was so understood by the Madhya Pradesh High Court and by the Madras High Court in Chandan Wood Products v. CIT [1988] 173 ITR 585 (MP) and CIT v. Subramanian and Co. [1989] 180 ITR 149 (Mad). The word "forward" occurring in section 144b(1) of the Act was understood as requiring the officer only to send a draft order of assessment, as could be seen from the Circular of the Central Board of Direct Taxes (Circular No. 197 dated 17-4-1976. In this case, it is admitted that the objections were "forwarded" by the assessee on April 4, 1981, by registered post, well ..... X X X X Extracts X X X X X X X X Extracts X X X X
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