TaxTMI 
TaxTMI 
1982 (5) TMI 48
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....Rs. 5,122 in the asst. yrs. 1973-74. Similarly, it was found that in the asst. yr. 1974-75 the assessee firm had paid salaries to partners amounting to Rs. 7,200 and profit disclosed by the said firm was Rs. 2,354. The assessee failed to file return as required u/s 139(1) of the IT Act, 1961, in respect of asst. yrs. 1973-74 & 1974-75. The ITO had reason to believe that income from profit or gain chargeable to income-tax had escaped assessment and such escapement had occurred by reason of omission or failure on the part of the assessee to make a return of its income u/s 139(1) of the Act. Consequently, the ITO issued notices u/s 147(a)/148 on 18th October, 1977 and it was served on the said date. 3. Pursuant to the service of notice u/s ....
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....thin four years, from the end of the assessment years in which notice u/s 148 were served. Thus, it was contended that the finding of the ld. AAC is illegal. 6. On behalf of the assessee the order of the ld. AAC was supported. In the alternative, it was contended that in case the order of the ld. AAC is set aside in that event the interest charged by the ITO u/ss 139(8) and 271 of the Act may be waived. 7. I have considered the rival submissions and perused the entire material on record. So the only controversy in the present matters is whether the assessment orders passed by the ITO on 28th Jan., 1981 are barred by time or not. 8. In the present matters it is not the case of the assessee that notices u/s 148 of the Act, 1961, were....
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.... recomputation shall be made u/s 147— (a) where the assessment, reassessment or recomputation is to be made under cl. (a) of that section, after the expiry of four years from the end of the assessment year in which the notice u/s 148 was served; (b) where the assessment, reassessment or recomputation is to be made u/cl (b) of that section, after— (i) the expiry of four years from the end of the assessment year in which the income was first assessable, or (ii) the expiry of one year from the date of service of the notice u/s 148, whichever is later. From the aforesaid discussion it would be clear that if the assessment order was passed u/s 143 or s. 144, the limit applicable would be what was given in sub-s. (1) of s. 153 ....
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....d be misleading the section. For an assessment made u/s 147, sub-s. 153 lays down the limitation. 12. In the present case there was failure on the part of the assessee to file the return u/s 139 (1) of the IT Act, 1961. So in view of 153(2) of the Act, 1961, the assessments u/s 147(a) must be made within four years from the end of financial year in which notice u/s 148 was served. If there was no failure to file the return nor any concealment, the assessment or reassessment u/s 147(b) must be made within four years from the end of the relevant assessment year within a maximum extension of one year from the date of service of notice u/s 148. 13. In the present case, as stated above, the assessee was having taxable income in both that y....