Section 144C jurisdiction limits assessment extension where no variation in returned income or loss is proposed.

Section 144C can be invoked only where the Assessing Officer proposes a variation in returned income or loss prejudicial to the assessee. Where the assessment involved no change in returned income or loss and only a different tax rate on the same income, that jurisdictional condition was not met. As a result, the extended time limit linked to section 144C could not be used, and the assessment had to be completed within the normal period under section 153(1). The order having been passed beyond that period, it was treated as time-barred and invalid.

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Issues: Whether the assessment order was barred by limitation because the Assessing Officer invoked section 144C without any proposed variation in returned income or loss, thereby extending the time available for completion of assessment.

Analysis: The assessment involved no change in the returned income or loss, only a different tax rate on the same income. On the facts, the jurisdictional condition for invoking section 144C was not satisfied because that provision applies where the Assessing Officer proposes a variation in income or loss prejudicial to the assessee. Once section 144C was wrongly invoked, the extended timeline for completing the assessment could not be availed. The assessment was therefore required to be completed within the normal period under section 153(1), and the impugned order was passed beyond that period.

Conclusion: The assessment order was time-barred and invalid; the issue was decided in favour of the assessee.

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