COMMISSIONER OF INCOME TAX Vs. SUNDARAM SPINNING MILLS

JUDGEMENT

(1.) THESE three tax cases, relating to three different assessees are for the asst. yrs. 1973-74, 1973-74 and 1968-69, respectively. The Tribunal has referred the following common question for the opinion of this Court at the instance of the Department, under s. 256(1) of the IT Act, 1961 (hereinafter referred to as "the Act").

(2.) TAX Case No. 573 of 1983 relates to the asst. yr. 1973-74, in respect of which the previous year ended on 31st March, 1973. The assessee is a registered firm. For the assessment year under consideration, the original assessment was made on 23rd March, 1976, on a total income of Rs. 6,93,636. After completion of the original assessment, action under s. 147 was taken, because the income from Kandasamy Spinning Mills was not included in the original assessment, extra-shift allowance by way of depreciation on additions to plant and machinery was not restricted to the actual period of use and for diversion of substantial funds for non-business purposes no disallowance was made. For the notice issued under s. 148 on 17th February, 1978, the assessee filed a return on 17th March, 1978, declaring an income of Rs. 3,09,203. As the addition proposed exceeded Rs. 1 lakh, the ITO invoked s. 144B and called for the objections of the assessee and submitted them to the IAC and taking into account the directions given by the IAC, he completed the assessment on 29th June, 1979, on a total income of Rs. 14,01,770.

(3.) THE question that arises for consideration is, whether the meaning of the expression "in an assessment to be made under sub-s. (3) of s. 143" takes in a reassessment, i.e., in a case where the assessment made is a reassessment consequent to the issue of notice under s. 148 having reason to believe that income has escaped assessment, where the provisions of s. 144B would be applicable. If the provisions of s. 144B are applicable to reassessments, the further time-limit of six months would be available to the Revenue and if s. 144B is not applicable to the reassessments made under s. 147, then the time-limit for making reassessments would remain unextended.