MACHINE TECHNO SALES LTD Vs. DEPUTY COMMISSIONER OF INCOME TAX
INCOME TAX APPELLATE TRIBUNAL
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R. Acharya, Accountant Member -
(1.) THE assessee has instituted this appeal against the order of the CIT (Appeals) for the assessment year 1987-88.
(2.) Ground Nos. 1, 2 & 3 relate to objection that the CIT(A) erred in confirming the assessment when the same was barred by limitation, when the notice under Section 148 issued was bad in law and when the return filed is to be treated as a return under Section 139(4) of the Income-tax Act, 1961 (in short 'the Act').
Briefly stated the facts of this case are that the assessee failed to file return of income within the time allowed under Section 139(1) of the Act. The return in this case was due to be filed under Section 139(1) on 31-7-1987. No application for extension of time in Form No. 6 was filed by 31-7-1987. The application for extension of time in Form No. 6 is filed only on 3-8-1987 requesting for extension of time up to 31-10-1987. The reason given in Form No. 6 is that 'audit is in progress and finalisation of account was not complete'. The second application for extension of time in Form No. 6 was filed on 10-11-1987 requesting the extension of time up to 28-2-1988. No specific ground was given in Form No. 6 as to why the extension of time for filing the return was sought for.
(3.) AS no return was filed till 25-10-1988 a notice under Section 148 was issued on the same day and was served on the assessee on 26-10-1988, requesting the assessee to file the return of income as income chargeable to tax has escaped assessment due to failure on the part of the assessee to file the return. Ultimately, the return of income was filed on 30-3-1989, along with two audit reports - first dated 24-7-1987 and the second dated 16-9-1987 and the total income was declared at Rs. 49, 65, 690. The assessment was completed on 22-8-1990 by the ASsessing Officer (in short 'AO') under Section 143(3) read with Section 147(a) and the total income was determined at Rs. 56, 86, 760.;
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