9911796707
TMI Blog1986 (2) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... it under section 139(1) of the Income-tax Act, 1961 ('the Act') though certain applications seeking extension of time were filed. Eventually a notice dated 11-2-1974 under section 139(2) was served by the ITO upon it on 15-3-1974. Even then no return in compliance thereof was filed, though again certain applications seeking extension of time were filed. Ultimately, the ITO made ex parte assessment under section 144 of the Act on 12-2-1976 but it was short lived. It was cancelled at the instance of the assessee under section 146 of the Act on 26-4-1976. But even thereafter no return of income was filed by the assessee and the assessment proceedings again went through the round of ex parte assessment under section 144 on 22-3-1979 and cancell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er section 139(2) served upon the assessee but therefrom the assessee is not benefited. The ITO has discretion to extend the date for furnishing the return under section 139(1) and (2) but such discretion cannot be exercised by him for any length of time. He has to complete the assessment within the time limit prescribed by section 153 of the Act, and in computing that period of limitation the time extended by the ITO cannot be excluded. It was the assessment year 1973-74 and the ITO was bound to complete the assessment by 31-3-1976 in view of section 153(1)(iii). The ITO could, therefore, extend the time for furnishing the return only up to such date as to enable him to complete the assessment by 31-3-1976. A valid return under section 139 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was to be completed by the ITO. Then there was further concession to the assessee in section 139(4) that on failure to file the return under section 139(2) it could file the return up to the maximum period of two years from the end of the assessment year, i.e., to say by 31-3-1976. Under such circumstances, the assessee does not get any benefit from the proceedings setting aside ex parte assessment. In the event of success in those proceedings the assessee is relegated to the stage of section 143 of the Act and certainly not to the stage of section 139. Section 146 mentions that the ITO shall, if satisfied about the existence of sufficient cause, cancel the assessment and proceed to make a fresh assessment in accordance with the provision ..... X X X X Extracts X X X X X X X X Extracts X X X X
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