Law:

Section:

Section 144B of the Income-tax Act, 1961 - Draft assessment order, reference to IAC - Assessment year 1978-79 - Draft assessment order passed by Assessing Officer on 27-3-1981 was received by assessee on 31-3-1981 and objection to it were forwarded by assessee by registered post on 4-4-1981 which were received by Assessing Officer on 7-4-1981 - Since objection of assessee reached Assessing Officer beyond prescribed seven days period, he did not forward draft assessment order with objection of assessee to IAC as required by section 144B(4) but completed assessment - On appeal, Tribunal upheld assessment - Whether for purposes of section 144B(3) it is enough if objection are forwarded by assessee within specified period, and on receipt of objection - Assessing Officer is bound to take steps under section 144B(4) to forward draft order together with objection received from assessee to IAC - Held, yes - Whether, therefore, word 'received' occurring in section 144B(3) should be understood only as 'forwarded' as specified in section 144(B)(2) - Held, yes - Whether in view of aforesaid legal position, since assessment was completed without complying with requirement of section 144B, it was unjustified and unreasonable and, therefore, Tribunal should have set aside impugned assessment and remitted matter to Assessing Officer - Held, yes FACTS For the relevant assessment year, the assessee filed the return showing a loss of Rs. 82,15,220. The ITO issued a draft assessment order on 27-3-1981, and the same was served on the assessee on 31-3-1981. The assessee, by his letter dated 3-4-1981, forwarded the objection to the draft assessment order by registered post on 4-4-1981, to the ITO. The objections were received by the ITO on 7-4-1981. He took the view that the objections were received by him one day beyond time so there was no need to comply with the requirements of section 144B(4). He therefore, did not forward the draft order together with the objections of the assessee to the IAC but, completed the assessment on 15-4-1981. On appeal, the Tribunal upheld the assessment. On reference : HELD On a plain reading of section 144B(2), it is clear that the assessee is…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492