J K COTTON SPINNING AND WEAVING MILLS COMPANY LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is a case referred to by the Income-tax Appellate Tribunal, Allahabad Bench, for answering the following two questions of law :

(2.) THE facts giving rise to the reference are as follows :

(3.) THE second question raises the question of limitation. Section 34(3) provides that no order for assessment or reassessment (barring certain orders with which we are not concerned) can be made after the expire of four years from the end of the year in which the income was first assessable. This bar is subject to two proviso, the second proviso being that it will not operate in a case of reassessment made in pursuance of an order under section 31. All the three reassessment were made after the expire of four years from the last days of the assessment years and, but for the proviso they would have been all, barred by time, but since they were made in pursuance of the order given by the Appellate Assistance Commissioner they were not subject at any time limit. All the reassessment orders were made in direct compliance with the directions contained in the Appellate Assistant Commissioners orders under section 31. He expressly called upon the Income-tax Officer to reassess the assessee and the reassessment was done in pursuance of the direction and was, therefore, not subject to the time limit contained in section 34(3).