- (1.) J:- These appeals are preferred against the judgment of the Calcutta High Court answering the three questions referred to it under Section 256(1) of the Income-tax Act against the assessee and in favour of the Revenue. The three questions are : "1. Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that the return of income furnished by the assessee by virtue of the provisions contained in sub-section (4) of Section 139 of the Income-tax Act. 1961. beyond the time allowed under sub-section (1) or sub-section (2) of the said section, could not be construed as a return furnished under either of the latter sub-section and in that view holding that the assessee was not entitled to file a revised return under sub-section (5) of Section 139 of the Income-tax Act, 1961 2. Whether, on the facts and in the circumstances of the case the assessment made by the Income-tax Officer for the assessment years 1964-65 and 1965-66 were within the time limit prescribed in Section 153 (1) (b) of the Income-tax Act, 1961 3. Whether, on the facts and in the circumstances of the case, the tribunal was correct in law in holding that the cases for the assessment years 1964-65, and 1965-66, were such as 'failing within clause(c) of sub-section (1) of Section 271
(2.) While Question No.1 was referred at the instance of the Revenue, Questions 2 and 3 were referred at the instance of the assessee. The two assessment years concerned herein are 1964-65 and 1965-66.
(3.) Fore the assessment year 1964-65, the assessee did not furnish a return within the period prescribed by sub-section (1) of Section 139. No notice under sub-section (2) of Section 139 was served upon him. The assessee submitted a return on August 13, 1964, disclosing a total income of Rs. 42,131/-. This return, it is not in dispute, was filed under, and taking advantage of the provision contained in, sub-section (4) of Section 139. On January 18, 1969, he filed a revised return disclosing a total income of Rs. 40,388/-. The assessee also disclosed in this revised return a capital loss of Rs. 1,60,672/- on the sale of a plot of land. The Income-tax Officer did not complete the assessment within four years of the expiry of the assessment year 1964-65 i.e., on or before 31-3-1969. He made the assessment order on January 15, 1970. He also initiated penalty proceedings under Section 271 (1) (c) and referred the same to Inspecting Assistant Commissioner as required by law in force at that time.;