9911796707
TMI Blog1986 (4) TMI 90X X X X Extracts X X X X X X X X Extracts X X X X ..... After the s. 144B proceeding, the IAC's directions were received by the ITO on 3rd Sep 1982 (sic). The final assessment was completed on 2nd July, 1982. 4. The normal time for completing the assessment is two years as per s. 153(1)(iii) and this assessment should have been completed before 1st April, 1982. The final assessment made on 2nd July, 1982 is prima facie out of time. But this is subject to exclusion of ht period between the forwarding of the draft order by the ITO under s. 144B(1) to the assessee and the date on which the directions of the IAC are received by the ITO under s. 144B as provided in Explanation 1(iv) to s. 153. The question is what is the period that has to be deducted from the total span of time under aforementio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee to the draft proposed, the ITO made onward transmission of the entire record to the IAC under s. 144B. That letter contains information relevant to the ground. The letter reads that the ITO had forwarded the proposed draft assessment to the assessee on 8th March, 1982. Sri Roongta, arguing for the Revenue, stated that in the face of this evidence it should be held that thet date of forwarding was the same date the ITO prepared the draft, namely, 8th March, 1982. 8. The decision of the Tribunal interest he case of ITO vs. Hind Fielders (P) Ltd (1982) 1 ITD 323 (Bom) was cited to urge that the word "forwarding means the date on which the paper was despatched for service. There can be no doubt that "forwarding" does not mean "receipt", ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that it had been forwarded on the very day it was signed by the ITO and that there must be some aliunde evidence to show the date of actual sending, that is to say the date on which the server was put in custody of the document to be served, for according to his submission, there would be no forwarding until the ITO actually loses seisin of it. Forwarding is to send away for outward transmission so that it may be taken for being delivered to the nominated person. We agree with the counsel for the assessee that the date of the draft order cannot be the date of forwarding. It was explained on behalf of the Department that no other office record is available at this distance of time and that the letter dt 27th April, 1982 addressed by the ITO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... server had been actually put in possession of the draft assessment to be served on the assessee. All that the law requires is that there should be a forwarding by the ITO and it is enough if the draft order leaves the outward tray for, on his part, there is nothing more to be done to complete the Act of forwarding. The letter of the ITO dt. 27th April, 1982 addressed to the IAC is firm evidence to show that the draft order has been forwarded by him on 8th Feb., 1982. Consequently, the assessment made is within time. 12. The second ground is whether the royalty income is to be taxed on the basis of accrual or on actual receipt basis. The CIT(A) elaborately discussed this issue and held that royalty income had accrued by virtue of s. 5(2) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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