Law:

Section:

Section 153, read with section 146, of the Income-tax Act, 1961 - Assessment - Time limit for completion of - Assessment year 1978-79 - Assessment of assessee for relevant assessment year was made under section 144 - Subsequently, assessment made under section 144 was cancelled and reopening order under section 146 was passed on 18-3-1983 - Assessee filed revised return on 20-3-1985 and order of fresh assessment was passed on 21-1-1986 - Assessee's case was that said assessment order was barred by limitation as assessment was not completed within period prescribed under section 153(2A) - Revenue's case was that as assessee had filed revised return showing its willingness to be assessed, question of limitation was not material - Whether since sub-section (2A) of section 153 makes no reference to revised return, fresh assessment in assessee's case had to be made before two years from end of financial year in which order under section 146 cancelling assessment order under section 144 was passed - Held, yes - Whether since aforesaid period of two years expired on 31-3-1985, and assessment order was passed on 21-1-1986, assessment order was barred by limitation - Held, yes FACTS The State Government in the Forest Department entered into an agreement with the assessee and appointed it as the selling agent for disposal of the kendu leaves purchased by the Forest Department. During the period relevant to the assessment year 1978-79, kendu leaves were sold at a price higher than the price fixed and specified in the agreement. The Assessing Officer was of the opinion that the extra profit earned was assessable in the hands of the assessee The assessment was framed under section 144 but the same was subsequently set aside on the ground that the assessee was prevented by sufficient cause not to comply with the Assessing Officer's order and, thereafter, the assessment was reopened under section 146 on 18-3-1983. The assessee filed a revised return on 20-3-1985, and the order of assessment was passed on 21-1-1986. On appeal, the assessee contended that the fresh assessment order was barred by limitation as it was not completed within the limit prescribed under section…

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