LAWS(ALL)-1997-4-156

MANIK CHAND BURMAN Vs. INCOME TAX OFFICER

Decided On April 25, 1997
MANIK CHAND BURMAN Appellant
V/S
INCOME-TAX OFFICER Respondents

JUDGEMENT

(1.) BY this petition, the petitioner seeks quashing of the impugned notices dated November 11, 1976, January 18, 1983, and January 28, 1983, annexures 3, 7 and 8 to the writ petition, respectively, issued by the Assessing Officer, calling upon the petitioner to furnish information/documents to enable him to complete the assessment, pursuant to the order dated December 30, 1957, setting aside the assessment order relating to the assessment year 1949-50 and directing the Income-tax Officer to make a fresh assessment after examining the accounts in detail and also the discrepancy in valuation of stock shown by the assessee to have been pledged with the bank.

(2.) THIS is a classic example of the callousness and the lethargic attitude of the respondent. The facts are that the assessment came to be completed for the year 1949-50 on the petitioner on March 23, 1954. The petitioner, aggrieved by the said assessment order, went up in appeal. The Appellate Assistant Commissioner of Income-tax by his order dated December 30, 1957, set aside the assessment order directing the Assessing Officer to redo the assessment in the light of directions as contained in the appellate order. The petitioner thereafter was called upon to appear before the Assessing Officer on several dates. Several notices had been issued during the period, ranging from 1970 to 1976. After a lapse of about 7 years, the respondent issued two notices dated January 18, 1983, and January 28, 1983, and then the petitioner filed the instant writ petition before this court challenging the impugned notices mainly on the ground that after a considerable lapse of time, the respondent was not justified in having issued the said notices.

(3.) IT is, therefore, clear from Sub-section (2A) of Section 153 of the Income-tax Act that after setting aside or cancellation, an order of assessment may be made at any time before the expiry of two years from the end of the financial year in which the order under Section 146 cancelling the assessment is passed by the Assessing Officer. Prior to the insertion of subsection (2A) in Section 153 in the year 1970, there was a Circular No. 10-P(V-68) of 1968, dated 15th October, 1968, to the effect that if any assessment has been set aside in appeal that should normally be completed within two years. The period of limitation as suggested in the said circular was later accepted by the Central legislation and this is how Sub-section (2A) came to be inserted in Section 153 of the Income-tax Act. From this it is manifest that the Department never intended to keep the proceedings open for years. Though limitation was not there before Sub-section (2A) was inserted in Section 153 yet the circular clearly indicates the Department's intention in this regard. Therefore, even if limitation was not there under the old Act, still it is not open to learned standing counsel to argue that the assessment could have been completed at any time in case an order in appeal for redoing the assessment was passed.