Sabyasachi Mukharji, J. - (1.) These two references are taken up together and disposed of by this common judgment.
(2.) In these references, the first one under s. 256(1) of the I.T. Act, 1961, and the second under s. 256(2) of the I.T. Act, 1961, we are concerned with the assessment year 1964-65. The assessee filed the original return on June 25, 1965, and a revised return on December 5, 1967. The assessment was completed on the March 26, 1969. The assessee preferred an appeal before the AAC. It was urged before him that the demand notice dated May 30, 1969, was served on the assessee on June 3, 1969, and as such the assessment made was barred by time and should be cancelled. The AAC held that the assessment should have been completed by March 31, 1969. But the demand notice was dated on May 30, 1969, and it was received by the assessee on June 3, 1969. It would be appropriate in this case to refer to the order of the AAC. He observed in his order, inter alia, as follows: " I have carefully considered the appellant's contention with reference to the income-tax record and find them to be correct. The original return was filed on June 25, 1965. Revised return filed on December 5, 1967. Due date for filing of the return was June 30, 1964. Ordinarily, the assessment for the assessment year 1964-65, should have been completed on March 31, 1969. It is seen that the demand notice is dated on May 30, 1969, received by the appellant on June 3, 1969. So, I find that the assessment has not been completed within the time allowed by the Income-tax Act, 1961. So, I hereby cancel the assessment as void and time-barred. The appeal is allowed."
(3.) Being aggrieved by the aforesaid order of the AAC, the Revenue went up in appeal before the Tribunal. The Tribunal, after dealing with the rival contentions observed, inter alia, as follows. " We have considered the rival submissions. We have perused the assessment records. We find that the assessment order which is signed by the Income-tax Officer is dated March 26, 1969. We have also seen duplicate copy of the demand notice and it is dated March 27, 1969. We have also seen the computation assessment form in which the tax liability on the total income assessed has been determined and this is dated March 27, 1969. In view of this, we are satisfied that the Income-tax Officer did determine the tax liability on March 27, 1969, and issued a demand notice dated March 27, 1969. This could not be served on the assessee for some reason or other. In view of that he has issued another demand notice dated May 30,1969, which was served on the assessee on June 3, 1969. Merely, because the notice of demand which was served on the assessee is dated May 30, 1969, it cannot be presumed that the assessment was completed on that date. The original assessmept order is dated March 26, 1969, and the assessment form determining the tax liability was also signed on March 27, 1969, and the duplicate copy of the demand notice is dated March 27, 1969. In view of this, we are satisfied that the assessment has been completed within the time and as such the assessment is not time-barred.";