1981 (4) TMI 136

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....July, 1972 and 29th March, 1974, respectively, the ITO passed order under s. 154 r/w s. 155 of the Act rectifying the share income of the assessee. According to the ITO the correct share income from the firm was enhanced to Rs. 19,787 from Rs. 15,869 in the asst. yr. 1966-67 and was enhanced to Rs. 29,406 from Rs. 13,650. Thus, the ITO issued demand notices but unfortunately they could not be served on the assessee till 12th Feb., 1979 when the fresh copy of orders with demand notices were served on him personally. The rectification orders in both the cases for both the years were passed on 30th April, 1974. In appeal, the AAC rejected the plea of the assessee and dismissed both the appeals with the following observations: "I have gone thr....

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....May, 1969 and 1st April, 1970 respectively while the law requires the rectification to be made within four years of the original assessments. Hence, we agree with the ld. counsel for the assessee that there was undue delay on the part of the Revenue authorities to have served the assessee with the demand notices after such a long delay and as such the demands created are not to be treated as legal both from equity point of view as well as from legal angle. In this respect, we may seek support from the decisions of their Lordships of the Supreme Court in the case of Banarsidevi & Ors. vs. ITO reported in (1964) 53 ITR 100 (SC) and the decision of the Privy Council reported in (1934) 2 ITR 216 (PC) and (1938) 6 ITR 414 (PC) at page 423. In t....