Law:

Section:

Section 153 of the Income-tax Act, 1961 - Assessment - Time-limit for completion of - Assessment year 1970-71 - Assessee filed writ petitions challenging notices issued under sections 140A and 271(1)(c) on ground that assessment had not been made within prescribed time-limit, bar of limitation under section 153(1)(c) was attracted - Whether since very purpose of show-cause notice was to afford an opportunity of hearing to assessee and only thereafter decision could be taken by respondent-authority, interference before that stage would be premature and proper course, therefore, would be to relegate assessee to show cause before Assessing Officer - Held, yes FACTS The Four different returns showing different incomes had been filed by the assessee for the assessment year 1970-71. The assessee was served a notice under section 140A(3) on the ground that the tax payable by the assessee on self-assessment as required under the law had not been paid by the assessee. The assessee was also served with another notice under section 271(1)(c) to show cause why an order imposing a penalty should not be made for having concealed the particulars of his income or furnished inaccurate particulars of such income. On writ petition, the assessee challenged the validity of the said notices on the ground that as the assessment had not been made within the prescribed time-limit, the bar of limitation under section 153(1)(c) was attracted and, therefore, the Assessing Officer ceased to have jurisdiction to make any assessment. The Department, however, contended that the case of the assessee fell under section 153(1)(b), the time-limit for making the assessment was eight years from the end of the relevant assessment year, and, therefore, the contention as to the bar of limitation pleaded by the assessee was untenable. The Single Judge dismissed the writ petition. On appeal: HELD In the instant case, what had been questioned was the show-cause notice. The same was questioned on the ground of jurisdiction. The jurisdiction of the ITO to issue the impugned notice was itself questioned on the ground of the bar of limitation. It was, therefore, not a case of inherent lack of jurisdiction.…

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