1995 (8) TMI 44

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....of the Revenue to answer the following question of law : "Whether, on the facts and in the circumstances of the case, the Tribunal was legally justified in holding that the assessment made on March 28, 1977 is barred by limitation ? " The assessee is an individual and the question of law referred to us relates to the assessment years 1971-72 and 1972-73. For the said assessment years, the as....

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.... the order of the Commissioner of Income-tax should have been completed by March 31, 1976, and, therefore, the present assessments made on March 28, 1977, were barred by time. The Department filed a second appeal before the Appellate Tribunal which was subsequently dismissed. Sub-section (2A) of section 153 of the Act runs as under : "Notwithstanding anything contained in sub-sections (1) and (....

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....er section 146 or in pursuance of an order, under section 250, section 254, section 263 or section 264 setting aside or cancelling an assessment at the instance of the Commissioner of Income-tax under section 263 the fresh assessment proceedings have to be completed within two years of commencing (?) of such financial years. Learned counsel appearing for the Revenue urged that since sub-section....

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....der has to be passed within the period of two years prescribed therein. In the case of Shri Prem, Nath Mayor v. CIT [1984] 148 ITR 588 (P & H), it was held that it is open to the Income-tax Officer to pass a fresh order of assessment within two years from the end of the financial year in which the order of remand is passed. We are in agreement with the decisions referred to above. The result of th....