1983 (1) TMI 162

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....a broker in gold ornaments. An assessment was made on 26-5-1981. Substantial additions were made to the returned income. The AAC held that the assessment was barred by time limit. The additions were also deleted on merits. Hence the departmental appeals on the question of limitation as well as merits. 2. We propose to dismiss this departmental appeal on the only ground that the assessment was b....

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....view of this, I hold that there has been no valid issue of statutory notice for the assessment year in question. It is purely on this technical ground that the order of the ITO under section 144 is set aside with a direction to re-do the assessment on the basis of materials, which the assessee might bring in evidence." 3. If the assessment made on 26-5-1981 now attacked as barred by limitation ....

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....le for the ITO to complete the assessment, that the return furnished is under section 139(4) of the Act and that, therefore, the ITO ought to have made an assessment before 31-3-1977. 4. What we think is that the assessee is certainly right. If this best judgment assessment is void one as contended by the assessee, then the appellate proceedings against such void orders, on which appellate proc....

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....ncome-tax, Seventh edition, Vol. I at page 823, it is stated as follows : ". . . the contingencies mentioned in section 144 are such that no assessment can be made under that section either, unless the assessee has made a return or has been served with a notice under section 139(2). Thus a notice calling for a return under section 139(2), would be a condition precedent to assessment under secti....