TaxTMI 
TaxTMI 
1997 (4) TMI 11
X X X X Extracts X X X X
X X X X Extracts X X X X
....n and Karuna Rani Jain, the two partners of the assessee-firm in their individual capacity. The appeals relate to assessment years 1967-68, 1968-69 and 1969-70. On April 24, 1971, a search was conducted at the business premises of the assessee-firm as well as at the residential premises of the partners and certain documents and papers were seized during the course of search. The partners of the assessee-firm filed writ petitions in the Delhi High Court wherein they challenged the validity of the said search and seizure. The said writ petitions were admitted by the High Court on October 26, 1971. In the said writ petitions an interim order was passed on November 23, 1971, by Rajinder Sachar J. (as he then was) in the following terms. (see [1....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e assessment proceedings against the appellants. The said contention of the appellants was rejected by the learned single judge on the view that the expression " assessment proceeding " in Explanation 1 in section 153 would include the passing of the order of assessment and since the passing of the order of assessment had been stayed by the Delhi High Court, there was a stay of assessment proceedings by the High Court. The learned single judge held that in view of the stay order passed by the Delhi High Court the period from November 23, 1971, to March 31, 1972 (the last date for completing the assessment), i.e., the period of four months and eight days, was available to the Income-tax Officer to complete the assessment after the dismissal ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....3. (1) No order of assessment shall be made under section 143 or section 144 at any time after--- (a) the expiry of--- (i) four years from the end of the assessment year in which the income was first assessable, where such assessment year is an assessment year commencing on or before the 1st day of April, 1967 ; (ii) three years from the end of the assessment year in which the income was first assessable, where such assessment year is the assessment year commencing on the 1st day of April, 1968 ; (iii) two years from the end of the assessment year in which the income was first assessable, where such assessment year is an assessment year commencing on or after the 1st day of April, 1969, or . . . Explanation 1. --- In computing the peri....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... (ii) inquiry by the Assessing Officer in accordance with the provisions of sections 142 and 143 ; (iii) making of the order of assessment by the Assessing Officer under section 143(3) or section 144 ; and (iv) issuing of the notice of demand under section 1.56 on the basis of the order of assessment. The process of assessment thus commences with the filing of the return or where the return is not filed, by the issuance by the Assessing Officer of notice to file the return under section 142(1) and it culminates with the issuance of the notice of demand under section 156. The making of the order of assessment is, therefore, an integral part of the process of assessment. Having regard to the fact that the object underlying the Explanation is ....