2004 (4) TMI 37

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....ed on September 29, 1970 and the last such return was filed on July 4, 1974. According to the appellant, assessment could have been made but was not made within March 18, 1976 and, therefore, the Income-tax Officer ceased to have jurisdiction to make any assessment. The assessee was served with a notice dated August 28, 1977, calling upon him to show cause why a penalty should not be levied on him under section 140A(3) of the Income-tax Act. The reason for such notice is stated to be that the tax payable by the assessee on self-assessment as required under law has not been paid by the assessee. The assessee was also served with another notice dated October 5, 1977, under section 274 read with section 271 of the Income-tax Act calling upon t....

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.... and the judgment under appeal warrants interference by this court. In support of the said submissions, it was contended by Ms. Chandrima Bhattacharjee that there are no proceedings which can be said to be pending before the Income-tax Officer to confer jurisdiction on him to issue the impugned notice. The bar of limitation under section 153(1)(c) is attracted and, therefore, the impugned notice is wholly without jurisdiction. It was elaborated by Ms. Bhattacharjee that it is only in the course of assessment proceedings that the Income-tax Officer could have come to the conclusion that the assessee was guilty of the offence contemplated under section 271(1)(c) of the Act. As there are no proceedings for assessment pending before the Income-....

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....the Income-tax Officer on October 5, 1977 and to clarify certain points in support of his return with accounts and documents. Mr. Nizamuddin referring to paragraph 14 of the affidavit-in-opposition submitted that the assessee's advocate appeared at the hearing and took adjournment to produce evidence in support of the return and in support of such assurance prayed for adjournment. It was, therefore, submitted that the assessment proceedings were pending on the said dates and the question of bar of limitation does not arise. It was strenuously urged that the period of limitation in the case on hand is eight years for completing the assessment and reliance is placed on section 153(1)(b) of the Income-tax Act by learned counsel for the Revenue....