2001 (2) TMI 113

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....s correct in law in holding that the provisions of section 144B of the Income-tax Act, 196 1, were not applicable to the present case ?" The dispute relates to the assessment year 1975-76 for which the relevant previous year ended on December 31, 1974. The factual position, in a nutshell, is as follows : The assessee had furnished a return on June 30, 1975, declaring a loss of Rs. 69,898 and unabsorbed loss of Rs. 1,33,077 brought forward from earlier years. The aggregate amount of loss, i.e., the loss for the assessment year 1975-76, together with the unabsorbed loss brought forward from earlier years, was shown by the assessee at Rs. 2,02,915. The Income-tax Officer (in short the "ITO"), was of the view that on determining the lo....

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....ade any variation in the unabsorbed loss brought forward from the earlier years and as the only variation related exclusively to the current year's loss, there was no necessity for taking a recourse to section 144B. Accordingly, it was held that the provisions of section 144B were not applicable. It was also held that the assessment had to be completed within the period of limitation laid down under section 153(1) of the Act, without the benefit of extended time limit provided in clause (iv) of Explanation (1) to section 153 of the Act. The assessment was, therefore, held to be barred by limitation. The Revenue carried the matter in appeal before the Tribunal. Its stand was that the total amount of loss, as returned by the assessee, i.e., R....

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....tion to the Income-tax Officer within seven days of the receipt by him of the draft order or within such further period not exceeding fifteen days as the Income-tax Officer may allow on an application made to him in this behalf. (3) If no objections are received within the period or the extended period aforesaid, or the assessee intimates to the Income-tax Officer the acceptance of the variation, the Income-tax Officer shall complete the assessment on the basis of the draft order. (4) If any objections are received, the Income-tax Officer shall forward the draft order together with the objections to the Inspecting Assistant Commissioner and the Inspecting Assistant Commissioner shall, after considering the draft order and the objectio....