Section 144B reference valid where concurrent jurisdiction existed and extended limitation under Section 153 applied.

Where the assessee's income was varied by more than Rs. 1 lakh and the Income-tax Officer had concurrent jurisdiction with the Inspecting Assistant Commissioner under Section 125A, sub-section (7) of Section 144B did not exclude the reference procedure under Section 144B. The extended limitation period under clause (iv) of Explanation 1 to Section 153(3) was therefore available, so the reference under Section 144B was valid and the assessment was not time-barred. The question was answered in the negative, in favour of the Revenue and against the assessee.

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Issues: Whether, on the facts and in the circumstances of the case, the reference made under Section 144B of the Income-tax Act, 1961 was bad in law and whether the assessment made on July 31, 1982 was barred by limitation.

Analysis: The assessee's income had been varied by more than Rs. 1 lakh, and the Income-tax Officer had concurrent jurisdiction with the Inspecting Assistant Commissioner under Section 125A of the Income-tax Act, 1961. In that situation, sub-section (7) of Section 144B was held not to exclude the procedure under Section 144B. The extended period of limitation under clause (iv) of Explanation 1 to Section 153(3) was therefore available.

Conclusion: The reference under Section 144B was not bad in law, and the assessment was not barred by limitation. The question was answered in the negative, in favour of the Revenue and against the assessee.

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