Law:

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Section 144b of the Income-tax Act, 1961-Draft assessment order-Approval by IAC - Whether an undated and unsigned draft assessment order under section 144B(1), although forwarded under a letter duly signed and dated, would vitiate final assessment order-Held, on facts, no Facts The ITO sent to the assessee a draft assessment order under section 144B(1) which was undated and unsigned, although the relevant forwarding letter was signed and dated. The assessee challenged its authenticity on the plea that the same was non est and the consequential final assessment order was a nullity. On special civil application: Held The whole purpose of section 144B is to give an opportunity to the assessee at the earliest stage to be heard against the line of action which the ITO proposes to take in the proposed assessment order. Its date of receipt by the assessee is material for purpose of limitation under section 144B. It cannot bear any date because the final order has to be passed in case no objections are raised at a subsequent future date or after receipt of the IAC's directions, if any objections are received. Further, the essential requirement under section 144B is the forwarding of the said draft assessment order .If the forwarding letter is properly authenticated, bears date and signature and is in accordance with law, the mere fact that the said draft is neither signed nor dated would make no difference. In the instant case, the forwarding letter was duly signed and dated and, after hearing the assessee in respect of her objections, the IAC gave directions to the ITO for passing final assessment order. There was, thus, no merit in the assessee's application which was dismissed. Cases referred to Bibhuti Bhusan Roy v. ITO [1978] 111 ITR 84 (Cal.), Century Spg. & Mfg. Co. Ltd. v. Ulhasnagar Municipal Council AIR 1971 SC 1021, B.K. Gooyee v. CIT [1966] 62 ITR 109 (Cal.) and Y. Narayana Chetty v. ITO [1959] 35 ITR 388 (SC). Judgment Divan, CJ.-The main grievance of the petitioner in this case is that the draft of the proposed order which the ITO sent under the provisions of section 144B, sub-section (1), on March 26, 1980, was not dated or signed so far as the…

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