T.K.Basu, J. - (1.) In this application the petitioner challenges three notices all dated the 17th October, 1978, and issued under Section 148 of the I.T. Act, 1961 (hereinafter referred to as "the Act"). The notices are in respect of the assessment years 1970-71, 1971-72 and 1972-73, respectively. Although the main challenge is that the condition precedent for the applicability of Section 148 was not satisfied in the present case and it was pressed very strenuously and a large number of authorities were cited before me, the other point as to the limitation was also urged equally strenuously. Before I deal with the main challenge, I shall deal with the question of limitation.
(2.) On the question of limitation, it was submitted that Section 153 of the Act provides the time-limit for the completion of assessments and reassessments. The issue of limitation, it was contended, is to be considered in the light of Section 153(2) of the Act. It was pointed out that separate time-limits for the completion of an assessment were provided for under Section 147(a) and under Section 147(b) of the Act. The submission on the question of limitation was on the basis that the proceedings, which were impugned in the present case, fell under Section 147(b) of the Act. This is because, although the point was not given up by Mr. Suhas Sen, appearing for the Revenue, he did not seriously try to justify the issue of the impugned notices under Section 147(a) of the Act. In other words, Mr. Sen's main argument was an attempt to justify the issue of the notices under Section 147(b) of the Act, an argument with which I shall deal later on.
(3.) On the question the following points were urged on both sides. (a) What is the period of limitation for the completion of reassessment proceedings initiated under Section 147(b)/148 of the Act ? (b) Whether the reassessment proceedings under Section 147(b) were already barred by limitation as provided in Section 153(2)(b) of the Act, on or before 17th October, 1978, the date when the ITO issued notices under Section 142(1) of the Act? (c) Where the reassessment proceedings cannot be completed because of the bar of limitation under Section 153(2)(b) of the Act, should this court go into the question of limitation or leave it to be considered by the ITO ? (d) Has Section 153(2A)/153(3) any application in this case? (e) Is there any ground or prayer regarding limitation ? With regard to the points (a) and (b) noted above, it was pointed out that no order for reassessment under Section 147(b) of the Act could be made after the expiry of-- (i) four years from the end of the relevant assessment year, or (ii) one year from the date of service of the notices under Section 148, whichever is later.;