Law: Income Tax Act, 1961

Section: 153

(a) Income-tax---Reassessment---Limitation---Limitation for completion of reassessment---Effect of Expln. 1 to 5.153---"Assessment" in 5.153 includes reassessment---Period during which proceedings were stayed by Court must be excluded in computing limitation---Indian Income Tax Act, 1961, Ss. 2, 147 & 153. (b) Income-tax--- ----Reassessment---Failure to disclose material facts necessary for assessment ---Assessee publishing newspaper---Discrepancy between figures of circulation given by assessee and those issued by audit bureau of circulation---Competency of audit bureau of circulation not challenged---No evidence to show that figures issued by audit bureau of circulation were erroneous---Reassessment on basis of such figures was valid---Indian Income Tax Act, 1961, S.147(a). (c) Income-tax--- ----Reassessment---Failure to disclose material facts necessary for assessment---Information that income had escaped assessment--­Limitation---Amounts shown in accounts as deposits but I.T.O. informed that amounts represented sale proceeds---Reassessment proceedings to treat amounts as sale proceeds after four years---Reassessment proceedings under, S.147(a) were not valid and proceedings under S.147(b) were barred by limitation---Indian Income Tax Act, 1961, Ss. 147 & 148. Section 153(2) of the Income-tax Act, 1961, fixed the time limit within which period the proceedings should be concluded. The entire period commencing from the date of issue of a notice till the expiry of the period of four years from the last date of the assessment year in which that notice was served is available to the authority for completing the proceedings. Explanation 1 to section 153 is meant to apply to the entire section .The matter dealt with in Explanation 1 (ii) is the effect of an order of stay granted by the Court against the completion of the proceedings referred to in the section. If Parliament chose to refer to all the proceedings referred to in section 153 in the several subsections (1), (2), (2A) and (3) by referring to them compendiously as "assessment proceeding", there can possibly be no objection to such a course, having regard to the definition of "assessment" in…

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