1988 (2) TMI 38

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....ncome-tax Act, 1961, does not mean 'serve' ? (ii) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessment made by the Incometax Officer for the assessment year 1978-79 after recourse to section 144B of the Income-tax Act was within time?" The material facts giving rise to this reference, briefly, are as follows: The assessee is assessed in the status of a registered firm. For the assessment year 1978-79, the accounting year for which ended on March 31, 1978, the assessee filed its return on July 31, 1978. As the Income-tax Officer proposed to make an addition exceeding Rs. one lakh to the income of the assessee, the Income-tax Officer forwarded the draft of the proposed orde....

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.... for its opinion turn on the meaning to be given to the expression " forward " occurring in section 144B(1) of the Act. It is not disputed that if the provisions of Explanation 1(iv) to section 153 of the Act are attracted, then the assessment would be within the time prescribed therefor. The contention urged on behalf of the assessee is that the word " forward " used in section 144B(1) of the Act means " serve ". To appreciate this contention, it is necessary to refer to the relevant provisions of section 144B of the Act which are as follows: " 144B. (1) Notwithstanding anything contained in this Act, where, in an assessment to be made under subsection (3) of section 143, the Income-tax Officer proposes to make any variation in the inco....