1996 (9) TMI 8

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....-tax Act. He sent a copy of the draft assessment order to the assessee as required by the said provision to which the assessee submitted its objections. Thereupon, the Income-tax Officer referred the matter to the Inspecting Assistant Commissioner, again as required by Section 144B of the Act. While the matter was pending before the Inspecting Assistant Commissioner, the assessee came forward with the third revised return. The Income-tax Officer rejected the third revised return by his letter dated the March 5, 1980. In this letter, he stated that inasmuch as he had already made a draft assessment order and communicated the same to the assessee and has, after receiving the assessee's objections, referred the matter to the Inspecting Ass....

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.... if any person having furnished a return under Sub-section (1) or Sub-section (2), discovers any omission or any wrong statement therein, he may furnish a revised return at any time before the assessment is made. 7. The question is whether this right can be exercised even after the Income-tax Officer makes a draft order and after receiving the objections of the assessee, refers the matter to the Inspecting Assistant commissioner for directions. 8. Section 144B reads as follows: 144B. (1) Notwithstanding anything contained in this Act, where in an assessment to be made under Sub-section (3) of Section 143, the Income-tax Officer proposes to make any variation in the income or loss returned which is prejudicial to the asse....

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....sued under this sub-section before an opportunity is given to the assessee to be heard. (5) Every direction issued by the Inspecting Assistant Commissioner under Sub-section (4) shall be binding on the Income-tax Officer. (6) For the purpose of Sub-section (1), the Board may, having regard to the proper and efficient management of the work of assessment, by order, fix, from time to time, such amount as it deems fit: Provided that different amounts may be fixed for different areas: Provided further that the amount fixed under this sub-section shall, in no case, be less than twenty-five thousand rupees. (7) Nothing in this section shall apply to a case where an Inspecting Assistant Commissioner exe....