CHANDRAPRABHA CHARITABLE TRUST Vs. STATE OF KERALA

JUDGEMENT

(1.) Assessee is the revision petitioner and the assessment relates to the year 1993-94. Assessee is a charitable trust which was assessed to a net agricultural income of Rs. 2,28,560. Aggrieved by the order, assessee took up the matter, before the AAC. Contention was raised that the assessment was barred by limitation. It was pointed out that as per Section 39(6) of the Agrl. IT Act, 1991 any assessment other than those pending on the date of commencement of Agrl. IT Act, 1991 be completed within a period of two years from the date of filing of the return. It was stated that the return of income was filed as early as May, 1994 and hence the order should have been passed under Section 39(6) by May, 1996. But the assessment order was passed only on 15th June, 1998 and hence it was barred by limitation. Contention was repelled by the appellate authority. Assessee took up the matter before the Tribunal. Tribunal also rejected the appeal and hence this revision. Following are the questions of law raised for our consideration.

(2.) We may point out that as per Section 39(6) of the Agrl. IT Act, 1991 any assessment, other than those pending on the date of commencement of the Act shall be completed within a period of 2 years from the date of filing of the return. For easy reference we may extract Sub-section (6) of Section 39.

(3.) Under such circumstance we are of the view that the Tribunal is justified in holding that assessment order was not barred by limitation. We also fully endorse the view endorsed by the Division Bench in ST Rev. No. 78 of 2004.