- (1.) THIS appeal was admitted in terms of following questions : 'Whether, in the facts and circumstances of the case, the order passed by the AO on 31st May, 1982, under Section 104 of the IT Act, 1961, is within limitation under Section 106(b) of the Act ?'
(2.) THE relevant assessment year is 1973 -74, The order under Section 143(3) of the IT Act was passed on 20th March, 1975 and the order under Section 104 of the Act was passed on 18th March, 1978. Both the orders were challenged before the CIT(A). CIT(A) has set aside both the orders vide his order dt. 31st March, 1980. Fresh assessment order giving effect to the order of CIT(A) was passed on 26th March, 1982 and fresh order under Section 104 giving effect to the order of CIT(A) was passed on 31st May, 1982. The controversy before us is whether the fresh order passed under Section 104 of the Act giving effect to the order of CIT(A) is within the limitation.
(3.) LEARNED counsel for the appellant submits that in view of the provisions of Section 106(b), the order is within time as that has been passed within a year from the date of reassessment order passed by the AO giving effect to the order in appeal. As that order has been passed on 26th March, 1982, the AO can pass fresh order under Section 104 of the Act within a year from the date of reassessment order, i.e., one year period should be counted from 27th March, 1982.;