1989 (1) TMI 62

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....l position did not warrant these gifts and advances being made to the assessee. A notice under section 147(b) read with section 148 of the Act was consequently caused to be served upon the assessee on March 20, 1978. In the enquiry that followed, the Income-tax Officer formed an opinion that the addition to be made exceeded Rs. one lakh and it was, therefore, necessary to refer the draft assessment to the Inspecting Assistant Commissioner under section 144B of the Act. The draft assessment so framed, i.e., under section 144B of the Act, was then sent to the assessee on March 17, 1979, for inviting objections. These objections were then forwarded to the Inspecting Assistant Commissioner for his directions under section 144B. These directions....

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....thereof, the assessment had to be made either before the expiry of four years from the end of the assessment year in which the income first became assessable or before the expiry of one year from the date of the service of the notice under section 148, whichever date was later. In the present case, it will be seen that the notice under section 148 was served upon the assessee on March 20, 1978, and the assessment was not completed till September 4, 1979, i.e., beyond the period of one year from that date, viz., the date of service of notice under section 148 of the Act. In order to bring the assessment within limitation, there was a twofold contention sought to be put forth on behalf of the Revenue: one that all assessments whether under....