PANCHMAHAL STEEL LIMITED Vs. U A JOSHI ITO

JUDGEMENT

(1.) THIS appeal is preferred by the assessee against the judgment of the Gujarat High Court, dismissing its writ petition For the assessment year 1977-78, the assessee filed its returns. It appears that thereafter it filed a revised return and then a second revised return. After making the appropriate inquiry, the Income-tax Officer made a draft assessment order in view of the then existing provisions in section 144B of the Income-tax Act. He sent a copy of the draft assessment order to the assessee as required by the said provision to which the assessee submitted its objections. Thereupon, the Income-tax Officer referred the matter to the Inspecting Assistant Commissioner, again as required by section 144B of the Act. While the matter was pending before the Inspecting Assistant Commissioner, the assessee came forward with the third revised return. The Income-tax Officer rejected the third revised return by his letter dated the March 5, 1980. In this letter, he stated that inasmuch as he had already made a draft assessment order and communicated the same to the assessee and has, after receiving the assessee's objections, referred the matter to the Inspecting Assistant Commissioner he can no longer entertain the said revised return. Thereupon, the appellant approached the High Court by way of a writ petition

(2.) THE High Court rejected the appellant's contention that he has a right to file a revised return until the final assessment order is made. It held that once the draft assessment order was made, the Income-tax Officer's function is practically over and that thereafter there is no question of entertaining a revised return. Accepting such a return may involve, the High Court rightly pointed out, redoing the entire exercise done till then and may also require recalling the reference made to the Inspecting Assistant CommissionerWe are of the opinion that the reasons given and the conclusion arrived at by the High Court are unexceptionable

(3.) THE question is whether this right can be exercised even after the Income-tax Officer makes a draft order and after receiving the objections of the assessee, refers the matter to the Inspecting Assistant commissioner for directions Section 144B reads as follows