9911796707
TMI Blog1980 (5) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... king into the files of the assessee, the Commissioner found that even though additions of more than Rs. One lakh per year have been made to the income returned, the ITO did not follow the procedure laid down in s. 144B of the IT Act of issuing a draft assessment order which finally got referred to the IAC. The Commissioner thought that the order of the ITO, therefore, suffered from a legal infirmi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efect in jurisdiction and also in correctness on merits. The assessments covered related to 1971-72, 1972-73 and 1973-74 i.e., the assessments prior to 1st April, 1976. The provisions of s. 144B operate only after 1st April, 1976. Even so, according to the ld. counsel these being procedural provisions, could be followed by the ITO but even if he made an order without following the procedure laid d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Revenue would, in the opinion of the ld. counsel, be a very wrong approach to the matter. It is also pointed out that following the provisions under s. 144B the appeal would lie to the Commissioner that then the AAC. The ITO's discretion is also affected by the ITO not following the procedure laid down for assessment year prior to 1st April, 1976 but following the procedure under s. 144B laid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the assessee has challenged the order of the Commissioner both in jurisdiction as well as on merits primarily contending that the conditions necessary for the application of s. 263 are not satisfied, it is not necessary in the present case to go into the question of interpretation of or the nature of the proceedings under s. 144B to come to any decision. Whether the order passed by the ITO wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at any future stage. If this happens after the period of limitation also the assessee would not suffer. The Commissioner, therefore, is correct in taking the view that the mere doubts to the validity caused prejudice to the Revenue and would also cast a doubt on the erroneous nature of the ITO's order. Without, therefore, going into the correctness or otherwise of the applicability, the mandatory ..... X X X X Extracts X X X X X X X X Extracts X X X X
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