TaxTMI 
TaxTMI 
2009 (11) TMI 551
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....ate Sri S. Arun Raj, appearing for the respondent assessee. The facts in this case are quite peculiar and unique because the very same income, i.e., refund due to the assessee from the KSEB, though assessed in 1977-78, was offered for payment of tax by the assessee by voluntarily filing a return for the assessment year 1979-80. The Assessing Officer initially took the stand that the amount was assessable on accrual basis based on declaration of eligibility for refund by the Supreme Court in the electricity tariff case and therefore, it was assessed for the assessment year 1977-78. However, the assessee contested the assessment for 1977-78 on the ground that the refund is assessable only for the assessment year 1979-80. The assessee consiste....
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....assessment year 1977-78 before the Tribunal, they did not challenge the conditional order passed by the Assessing Officer for 1979-80 wherein the Assessing Officer left freedom to himself to revise the assessment to include the very same income based on the return filed by the assessee for the assessment year 1979-80 in case the assessment of the very same amount for 1977-78 gets cancelled in the course of proceedings under the statute. Ultimately, the assessee's claim for exclusion of the income for the assessment year 1977-78 was upheld by this court in reference case decided on May 22, 1998, and the said decision is reported in Travancore Chemical and Manufacturing Co. Ltd. v. CIT [1999] 237 ITR 821. 3. After this court rendered the j....
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....hat the assessment is not tenable under section 150(1) of the Act as the officer has not established that the assessment was within time prescribed under sub-section (2) of section 150. It is against this order the Revenue has filed this appeal. 4. During hearing standing counsel referred to the original assessment order passed by the Assessing Officer for 1979-80 which is extracted above and contended that the officer had in fact made the original assessment itself conditional and as and when the assessment for 1977-78 got finalized by the judgment of this court in the reference case, the Assessing Officer was free to revise the assessment by applying limitation under section 149 with reference to the judgment of this court. Coun....
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....ding to multiplicity of litigation necessitating the assessee to file appeal against the assessment for 1979-80 also as their contention was that the income is to be assessed for 1979-80 and not for 1977-78. We are of the view that the assessee cannot be permitted to contest the liability on technical ground of limitation after offering the income for assessment in the return filed for the year 1979-80. It is to be noted that the original assessment for 1979-80 was a conditional order passed by the Assessing Officer which requires modification depending upon the result of proceedings that were pending against the assessment for 1977-78. When the High Court in the reference case upheld the assessee's claim that the income is not assessable f....