1989 (3) TMI 114

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....assessee in terms of the proviso to section 129 of the Income-tax Act, 1961, is to be excluded in computing the time limit within which the assessment has to be passed in terms of section 153 of the Act ?" The respondent is the Revenue. We are concerned with the assessment year 1977-78. Under section 153 of the Income-tax Act, the assessment should normally be over on or before March 31, 1980. The disparity between the income returned by the assessee and the income proposed to be assessed by the Income-tax Officer was more than Rs. 1 lakh. Therefore, the Income-tax Officer forwarded a draft assessment order to the assessee in terms of section 144B of the Act. It was received by the assessee on March 5, 1980. The assessee sent a reply on ....

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....l. Thereafter, at the instance of the assessee, the Appellate Tribunal has referred the above question of law, for the decision of this court. We heard counsel for the applicant/assessee. It was argued that the assessee was not entitled to be reheard by the successor Income-tax Officer and the time taken for rehearing should not have been taken into account in deciding whether the assessment is time barred. Counsel for the assessee submitted that the fact that the assessee made a request for hearing, when he was not entitled to it, and that it was allowed by the authorities will not be a case governed by the proviso to section 129 of the Income-tax Act. In this connection, counsel for the applicant/assessee relied on the decision in Venk....

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....reto on March 12, 1980. The draft assessment order was sent along with the objections of the assessee by the Income-tax Officer to the Inspecting Assistant Commissioner. At this juncture, there was a change in the office of the Income-tax Officer. It was in these circumstances and in order to conform to the statutory requirements (section 129 of the Income-tax Act), the Inspecting Assistant Commissioner sent a letter to the assessee on August 7, 1980, to ascertain whether the assessee required an opportunity of being heard by the successor Income-tax Officer. The applicant/ assessee made a request for a hearing by the successor Income-tax Officer on August 13, 1980. The rehearing was afforded and the applicant/assessee was heard. However, t....