S B BHARGAVA Vs. COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) This is areference under Section 256(1) of the I.T. Act, 1961, hereafter "the Act". The Income-tax Appellate Tribunal, Delhi Bench 'C', Delhi, hereafter "the Tribunal", has referred the following question for the opinion of this court :

(2.) The assessment year involved is 1971-72, the accounting period ended March 31, 1971. Dr. S. B. Bhargava, the assessee, is a qualified eye specialist and has been in practice since long. For the assessment year 1971-72, the assessee shouldhave filed his return under Section 139(1) of the Act by June 30, 1971. No notice was issued to him under Section 139(2) of the Act. He filed a return on December 21, 1971, which would be a return under Section 139(4) of the Act. Thereafter, he filed a revised return on March 23, 1974. The assessment was completed on January 23, 1975, and as against the disclosed income of Rs. 9,525 in the original return and Rs. 11,225 in the revised return, the total income was computed at Rs. 30,130.

(3.) Aggrieved, the assessee filed an appeal and apart from challenging the assessment order on merits raised a legal plea. That plea was that the assessment made by the ITO on January 29, 1975, was barred by limitation. The assessment for this year should have been completed by March 31, 1974. According to the assessee since the return has been filed under Section 139(4) it could not be revised under Sub-section (5) of Section 139 and that return did not extend the period for making the assessment. Therefore, the assessment was beyond time. The AAC did not accept this contention on the view that under Section 139(5) any person having furnished a return can file a revised return at any time before the assessment is made in case he discovers any omission or any wrong statement therein. The time for making the assessment, therefore, stood extended by one year and so the assessment framed by the ITO on January 2, 1975, was well within time.