SHAKTI TILES INDUSTRIES Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) AT the instance of the assessee, the Income-tax Appellate Tribunal has referred the undernoted question of law for our opinion arising out of the order dated December 4, 1986, passed in I. T. A. No. 311/(Ind) of 1986 for the assessment year 1975-76 :

(2.) BRIEFLY stated, the facts of the case are that the assessee filed its return for the assessment year 1975-76 on July 3, 1979. The return was barred by time. The Income-tax Officer, after obtaining the approval of the Commissioner, issued notice under Section 148 of the Income-tax Act, 1961 (for short, "the Act"). Instead of filing the return in response to the notice, the applicant requested the Department to accept the return filed earlier. The Income-tax Officer, on the basis of the return, completed the assessment on March 30, 1983, and directed levy of interest of Rs. 3,408 under Section 139(8) of the Act. The applicant objected to the imposition of the interest on the ground that it was not a regular assessment and sought correction under Section 154 of the Act. The Income-tax Officer, vide order dated May 1, 1985, rejected the prayer. The appeal filed by the assessee was also dismissed. On further appeal, the order was maintained by the single member of the Tribunal. The Tribunal rejected the appeal. Aggrieved, the applicant filed the application under Section 256(1) of the Act. On that application, the Tribunal referred the aforesaid question of law.

(3.) IN the instant case, the assessment was not made either under Section 143 or Section 144 of the Act. INdisputably notice was issued under Section 148 of the Act which takes care of a situation where income has escaped assessment. It is a trite position of law that where a return is filed beyond the prescribed period then, it is no return in the eye of law and it should then be held as if no return is filed. It is not disputed before us that an assessment made after issuance of notice under Section 148 of the Act is not a regular assessment.