2005 (1) TMI 42

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....he assessment made in this case for the year under consideration was barred by limitation and hence was required to be annulled?" The assessment year is 1981-82. The assessee, a public limited company, was assessed under section 143(3) read with section 144B of the Act vide assessment order dated September 1, 1984. The said order was served on the assessee on September 12, 1984. The assessee carried the matter in appeal before the Commissioner of Income-tax (Appeals). By way of an additional ground the assessee challenged the assessment order as being barred by limitation. However, the Commissioner of Income-tax (Appeals), for the reasons stated in his order dated September 28,1987, did not admit the additional ground of appeal. The a....

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....ssessment was barred by limitation and annulled the assessment. It is this order of the Tribunal which is under challenge. Mr. B.B. Naik, learned standing counsel for the applicant-Revenue, invited attention to the provisions of sections 125A, 144B and section 153 of the Act and reiterated the submissions made before the Tribunal by the Revenue. Though served, there is no appearance on behalf of the respondent-assessee. Section 125A(4) of the Act reads as under: "(4) Where an order is made under sub-section (1) and the Inspecting Assistant Commissioner exercises the powers or performs the functions of an Income-tax Officer in relation to any area, or persons or classes of persons, or incomes or classes of income, or cases or classe....

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....ntral Range-II., Ahmedabad, to exercise concurrent jurisdiction with the Income-tax Officer, Central Circle, Jamnagar, is an admitted fact. The consequence of such an order is provided in sub-section (4) of section 125A of the Act. The said sub-section provides that all references in the Act or the Rules thereunder to the Income-tax Officer shall be construed as references to the Inspecting Assistant Commissioner. However, what is more material is that any provision of the Act requiring approval or sanction of the Inspecting Assistant Commissioner shall not apply in cases where the Inspecting Assistant Commissioner is vested with concurrent jurisdiction. Similarly, section 144B(7) of the Act specifically provides that nothing in the prec....

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....d obtaining approval or sanction. Section 153 of the Act provides for time-limit for completion of assessment. No order of assessment can be made under section 143 or section 144 of the Act at any time after the expiry of two years from the end of the assessment year in which the income is first assessable, where the assessment year is commencing on or after April 1, 1969, as provided under section 153(1)(a)(iii) of the Act. The only exception that can be carved out for the purposes of extending this period of limitation is available under Explanation 1(iv) to section 153 of the Act wherein it is provided that the period commencing from the date on which the draft assessment order is forwarded by the Income-tax Officer and ending with th....