1989 (1) TMI 62

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..... .-The matter here pertains to the assessment year 1973-74. On December 29, 1973, assessment under section 143(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), was framed on a total income of Rs. 4,081 Later, the Income-tax Officer learnt that the assessee had received gifts and advances from various persons whose financial position did not warrant these gifts and advances b .....

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..... he assessment. The Tribunal, accepting the assessee's contention, held the assessment made on September 4, 1979, to be barred by time and it consequently quashed it. The Tribunal also negatived the plea of the Revenue that the draft assessment sent to the assessee on March 17, 1979, be taken to be a valid assessment. It is in this background that the following questions have now been referred .....

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..... arises for consideration here is with regard to limitation. The time limit for completion of assessment and reassessment is provided by the provisions of section 153 of the Act and in terms thereof, the assessment had to be made either before the expiry of four years from the end of the assessment year in which the income first became assessable or before the expiry of one year from the date of t .....

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..... There is, indeed, a clear distinction between the assessment under section 143 and that under section 147 read with section 148. The assessment under section 147 does not depend upon the authority of section 143 for its completion. Section 147 itself authorises the Income-tax Officer to assess, reassess or recompute the loss or the depreciation allowance, as section 143(3) enables the Income-tax O .....

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..... the other claim, namely, that the draft assessment be treated as a valid assessment, this has to be noticed only to be rejected. If this were to be taken to be at par with the final assessment, it would be hit by the principle of natural justice, namely, the framing of it behind the back of the assessee. At any rate, as the very description of it shows that it was only a draft assessment, then, by .....

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