1979 (4) TMI 52

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....e to a notice under s. 22(2) of the Indian IT Act, 1922, hereinafter referred as the old Act, and the assessment was framed also under s. 23(3) of the old Act. 3. Necessary facts are that in response to a notice under s. 22(2) of the old Act served upon the assessee on 10th June,1960,an assessment under s. 23(3) of the old Act came to be framed on 25th March,1964. Against the declared income of Rs6,047;the income assessed amounted to Rs. 39,724. 4. The AAC, in appeal, set aside the assessment to be framed de novo by the ITO. The ITO while framing re-assessment in pursuance to the AAC's directions, however, took upon himself to frame an assessment under s. 143(3) of the Act and raised the assessment from the earlier figure to Rs. 42,62....

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....nder one Act, the fact that the ITO invoked the provisions of the order would make no difference. An assessment completed under the Act of 1961 when it ought to have been completed under the Act of 1922 is not a nullity. If it suffers from a mere technical defect, the AAC is competent in such a case to set aside the assessment and issue a direction to the ITO to complete the assessment afresh. The ITO can proceed with the fresh assessment notwithstanding the expiry of the period of four years prescribed by s.34(3) of the Act and the second proviso to s. 34 (3) of the act of 1922. The fresh assessment would be served by s.150 of the 1961 Act of 1922. The scheme of s. 23B of the Act of 1922 to treat a provisional assessment as altogether dist....