TaxTMI 
TaxTMI 
2002 (7) TMI 85
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....-76. Initially the assessment order was passed on August 16, 1977. In appeal, the Appellate Assistant Commissioner set aside that assessment order and directed to make fresh assessment. Fresh assessment order was passed under section 144 on May 25, 1978. That assessment order was recalled under section 146 on November 20, 1978. Thereafter a draft assessment order was prepared and that draft order was sent to the Inspecting Assistant Commissioner on November 28, 1979. The Inspecting Assistant Commissioner later on found that draft assessment order cannot be passed under section 144B of the Act. A fresh order thereafter was passed again under section 144 of the Income-tax Act, 1961, on April 19, 1984. The Income-tax Officer sent the notice of....
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....1961, particularly when the assessment has not been completed in time. In support of his contentions, he placed reliance on the decisions reported in CIT v. Balkrishna Malhotra [1971] 81 ITR 759 (SC); Kalyankumar Ray v. CIT [1991] 191 ITR 634 (SC) and Kilasho Devi Burman (Smt.) v. CIT [1996] 219 ITR 214 (SC). Mr. Singhi, learned counsel for the Revenue, submits that if the tax is determined separately after completion of the assessment, that is an irregularity and which can be cured under section 292B of the income-tax Act, 1961. In support of his contentions, he placed reliance on the decision reported in Kalyankumar Ray v. CIT [1991] 191 ITR 634 (SC). When the fresh assessment is made under section 146 or under section 250 or under sec....
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....correct, inadequate or incomplete in any material respect, the Income-tax Officer shall, by an order in writing, make any fresh assessment of the total income or loss of the assessee, and determine the sum payable by him or refundable to him on the basis of such assessment." Clause (b) of sub-section (3) of section 143 provides that in case where the assessment has been made under sub-section (1) and if the assessment has been objected to either by the assessee or by the Income-tax Officer, being of the opinion that such assessment is incorrect, inadequate or incomplete in any material respect, the Income-tax Officer shall, by an order in writing, make a fresh assessment of the total income of the assessee or loss of the assessee and dete....
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....e by him". In other words, in those provisions the word 'assess' has been used with reference to computation of the income of the assessee and not the determination of his tax liability. But in section 34(3) the word used is not 'assess' but 'assessment'. The question for decision is what is the meaning of that word? As long back as September 24, 1953, the High Court of Madras in Viswanathan Chettiar's case [1954] 25 ITR 79 came to the conclusion that the word 'assessment' in the proviso to section 34(3) means not merely the computation of the income of the assessee but also the determination of the tax payable by him." In the case of Kalyankumar Ray v. CIT [1991] 191 ITR 634 (SC), the issue before their Lordships was whether computation ....