1991 (9) TMI 25

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....ssions with the Income-tax Officer and the Inspecting Assistant Commissioner of Income-tax, as a result of which a tentative understanding was reached that the amount of Rs. 2,02,407 found written on the seized paper contained an element of unaccounted profit of Rs. 1,20,730. Pursuant to the said discussions, the assessee filed revised returns on February 17, 1965, and the Income-tax Officer, accordingly, on February 20, 1965, submitted draft assessment orders for the approval of the Commissioner of Income-tax on the basis of the said revised returns. The Income-tax Appellate Tribunal has, in its statement of the case, observed that these draft assessment orders were not signed by the Income-tax Officer and the Commissioner of Income-tax di....

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....962-63 6,733 1963-64 6,000 1964-65 7,426 The assessee, unsuccessfully, appealed before both the appellate authorities below. The Income-tax Appellate Tribunal confirmed the said penalty levied by the Income-tax Officer for the assessment years in question. One of the points raised by the assessee before the Income-tax Appellate Tribunal was regarding the limitation for drawing up penalty proceedings for the said six years. Accordingly, at the direction of the High Court, the Income-tax Appellate Tribunal referred the following question of law for the opinion of this court: " Whether, on the facts and in the circumstances of the case, the assessment orders drafted by the Income-tax Officer on February 20, 1965, were in law final ....

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....ished that the draft orders dated February 20, 1965, were " final orders " in the sense that the assessee had made representation against the said orders before the Commissioner. Though the said orders were not communicated to the assessee even if he had treated the said orders as " final " he had to prefer appeals before the appellate authority concerned against the said orders which was not done. It appears to us that the assessee was also treating the said orders as draft orders and, therefore, was filing objections against the same before the Commissioner of Income-tax. In arriving at its finding that the draft orders dated February 20, 1965, were not final orders, the Income-tax Appellate Tribunal has placed reliance on a decision o....